Cooperative choice and its framing effect under threshold uncertainty in a provision point mechanism

Kotani, Koji, Tanaka, Kenta, & Managi, Shunsuke (2014) Cooperative choice and its framing effect under threshold uncertainty in a provision point mechanism. Economics of Governance, 15(4), pp. 329-353.

View at publisher

Abstract

This paper explores how threshold uncertainty affects cooperative behaviors in the provision of public goods and the prevention of public bads. The following facts motivate our study. First, environmental (resource) problems are either framed as public bads prevention or public goods provision. Second, the occurrence of these problems is characterized by thresholds that are interchangeably represented as "nonconvexity," "bifurcation," "bi-stability," or "catastrophes." Third, the threshold location is mostly unknown. We employ a provision point mechanism with threshold uncertainty and analyze the responses of cooperative behaviors to uncertainty and to the framing for each type of social preferences categorized by a value orientation test. We find that aggregate framing effects are negligible, although the response to the frame is the opposite depending on the type of social preferences. "Cooperative" subjects become more cooperative in negative frames than in positive frames, whereas "individualistic" subjects are less cooperative in negative frames than in positive ones. This finding implies that the insignificance of aggregate framing effects arises from behavioral asymmetry. We also find that the percentage of cooperative choices non-monotonically varies with the degree of threshold uncertainty, irrespective of framing and value orientation. Specifically, the degree of cooperation is highest at intermediate levels of threshold uncertainty and decreases as the uncertainty becomes sufficiently large.

Impact and interest:

0 citations in Scopus
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 84225
Item Type: Journal Article
Refereed: Yes
Keywords: Cooperative choice, Framing effects, Provision point mechanism, Threshold uncertainty
DOI: 10.1007/s10101-014-0147-4
ISSN: 1435-6104
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > Schools > School of Economics & Finance
Deposited On: 18 May 2015 00:01
Last Modified: 19 May 2015 02:06

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page