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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Pledges of commitment and cooperation in partnerships
Organization Unit
  • Lachlan Deer
  • Ralph-C Bayer
  • English
Institution University of Zurich
Series Name Working paper series / Department of Economics
Number 201
ISSN 1664-7041
Number of Pages 24
Date 2015
Abstract Text We use experimental methods to investigate whether pledges of commitment can improve cooperation in endogenously formed partnerships facing a social dilemma. Treatments vary in terms of the individual’s (a) opportunity to commit to their partner, (b) the cost of dissolving committed partnerships, and (c) the distribution of these dissolution costs between partners. Our findings show that pledges of commitment alone can increase cooperation and welfare in committed partnerships . The introduction of relatively large and equally split costs yields similar gains. In contrast, when costs to dissolve committed partnerships fall solely on the individual choosing to break up, pledges of commitment fail to improve cooperation and welfare.
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Keywords Commitment, cooperation, endogenous group formation, experiment, Kooperation, Engagement, Gruppenbildung, Auflösende Bedingung, Experiment
Additional Information Revised version