|By:||Marielle Brunette (Laboratoire d’Economie Forestière, INRA – AgroParisTech)
Philippe Delacote (Laboratoire d’Economie Forestière, INRA – AgroParisTech)
Serge Garcia (Laboratoire d’Economie Forestière, INRA – AgroParisTech)
Jean-Marc Rousselle (INRA, UMR 1135 LAMETA)
The impact of the safety-net use of Common-pool resources (CPR) on the individual investment into and extraction from the commons is analyzed in this paper. Agents of the community first choose to invest in their private project and in the CPR; second, they choose how much to extract from their private project and the commons. The model compares two types of risk management tool: CPR as risk-coping and risk-diversification mechanisms. It also compares two types of risk: risk on a private project and risk on CPR investment by other community members. The theoretical predictions are empirically tested with experimental economics. In this view, we propose an original CPR game composed of two periods, an investment one and an extraction one. Our result clearly shows that risk reduction in the private project unambiguously decreases investment in the CPR, while it does not impact CPR extraction. We also show that a risk-coping strategy is well understood as more flexible and influenced by the outcome in terms of private project yield.
|Keywords:||Common-pool resource, Common-pool resource game, deforestation, experimental economics.|
|JEL:||Q15 Q23 D71 D81|
Cappelen, Alexander W., James Konow, Erik Ø. Sørensen, and Bertil Tungodden. 2013. “Just Luck: An Experimental Study of Risk-Taking and Fairness." American Economic Review, 103(4): 1398-1413. DOI: 10.1257/aer.103.4.1398; Online Appendix (307.82 KB) | Download Data Set (215.97 KB)
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|By:||Lora R. Todorova (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
Bodo Vogt (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
This paper experimentally examines the relationship between self-reporting risk preferences and behavioral choices in the subsequently played dictator, ultimatum and investment games. The results from these experiments are used to discern the motivational bases of behavioral choices in the ultimatum and investment games. The focus is on investigating whether strategic considerations are important for strategy selection in the two games. We find that self-reporting risk preferences does not alter the dictators’ offers and trusters’ investments, while it significantly decreases the proposers’ offers and leads to a substantial decrease in the amount trustees give back to their partners. We interpret these results as evidence that the decisions of proposers in the ultimatum game and trustees in the investment game are strategic.
|Keywords:||coordination game, dictator game, ultimatum game, investment game, questionnaire, risk scale, risk preferences|