Abstract
In this paper, we revisit the evidence for framing effects in threshold public good games. Our particular focus is on why the probability of providing the public good appears to be higher in positive, give frames compared with negative, take frames. We show that the impulse balance theory can explain this effect. We also report a new experiment designed to test the predictions of the impulse balance theory. The results of the experiment fit well, both in quantitative and qualitative terms, with our predictions.
Highlights
A large literature has looked at framing effects in social dilemmas (e.g., Andreoni, 1995; Cookson, 2000; Cox, 2015; Cubitt, Drouvelis, & Gächter, 2011; Dufwenberg, Gächter, & Hennig‐Schmidt, 2011; Fosgaard, Hansen, & Wengström, 2014, 2017; Khadjavi & Lange, 2011; Park, 2000; Van Dijk & Wilke, 2000)
Prior studies suggest that we would expect a value of λ between around 0.25 and 1 (Cartwright & Stepanova, 2017; Ockenfels & Selten, 2005). This leaves a region for smaller values of V where we expect the success rate to be positive with a public good frame and zero with a public bad frame
They found that subjects were more willing to contribute to a threshold public good if it was framed in terms of public good provision rather than public bad prevention
Summary
A large literature has looked at framing effects in social dilemmas (e.g., Andreoni, 1995; Cookson, 2000; Cox, 2015; Cubitt, Drouvelis, & Gächter, 2011; Dufwenberg, Gächter, & Hennig‐Schmidt, 2011; Fosgaard, Hansen, & Wengström, 2014, 2017; Khadjavi & Lange, 2011; Park, 2000; Van Dijk & Wilke, 2000). Sonnemans, Schram, and Offerman (1998) provide a rare exception in looking at a threshold public good game. They show that the success rate in providing the public good is significantly higher if the game is framed in terms of provision of a public good as compared with the prevention of a public bad.. The impulse balance theory, building on learning direction theory, says that people have a tendency to move in the direction of ex‐post rationality when learning from experience
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