Authors
Simon Gächter, Ernst Fehr
Publication date
1999/7/1
Journal
Journal of economic behavior & organization
Volume
39
Issue
4
Pages
341-369
Publisher
North-Holland
Description
Social interactions are frequently associated with social approval. Anticipation of social sanctions may have important economic consequences, in particular in the realm of collective action and voluntary cooperation. This paper investigates the impact and the limitations of social rewards on people’s behavior in the provision of a public good. We examine whether the opportunity to receive social approval in exchange for participation in collective actions is capable of overcome free-riding. We find that approval incentives alone are not sufficiently strong to cause a reduction in free-riding. However, in combination with some minimal social familiarity approval incentives generate a significant rise in cooperation. Our results also suggest that approval incentives give rise to multiple equilibria.
Total citations
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Scholar articles
S Gächter, E Fehr - Journal of economic behavior & organization, 1999