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

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Abstract
This paper explores how threshold uncertainty affects cooperative behaviors in each of public goods provision and public bads prevention. The following facts motivate our study. First, resource and environmental problems can be either framed as public bads prevention or public goods provision. Second, the occurrence of these problems is characterized by the existence of thresholds which is interchangeably represented by "nonconvexity," "bifurcation," "bi-stability," or "catastrophes." Third, the location of such a threshold is mostly unknown to observers. We employ a provision point mechanism with threshold uncertainty, and analyze the response of cooperative behaviors to uncertainty and to the framing in each type of social preferences categorized by a value orientation test. We find that aggregate framing effects are negligible, though response to the frame is opposite to the type of social preference in each subject. "Cooperative" subjects become more cooperative in negative frames than in positive frames, while "individualistic" subjects are less cooperative in negative frames than in positive ones. This implies that insigni cance of the aggregate framing effect arises from the behavioral asymmetry. We also find the percentage of cooperative choices non-monotonically varies with the degree of threshold uncertainty, irrespective of framing and value orientation. More specifcally, the degree of cooperation is highest in the intermediate level of threshold uncertainty, whereas it sharply drops as the uncertainty becomes suffciently large.

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  • Koji Kotani & Kenta Tanaka & Shunsuke Managi, 2011. "Cooperative choice and its framing effect under threshold uncertainty in a provision point mechanism," Working Papers EMS_2011_05, Research Institute, International University of Japan.
    • Handle: RePEc:iuj:wpaper:ems_2011_05
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    Cited by:

    1. Shibly Shahrier & Koji Kotani, 2019. "Natural disaster mitigation through voluntary donations in a developing country: the case of Bangladesh," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(1), pages 37-60, January.
    2. Kenta Tanaka & Keisaku Higashida & Arvin Vista & Anton Setyo Nugroho & Budi Muhamad Ruslan, 2016. "Do resource depletion experiences affect social cooperative preferences? Analysis using field experimental data on fishers in the Philippines and Indonesia," Discussion Paper Series 143, School of Economics, Kwansei Gakuin University, revised Jun 2016.
    3. Fredrik Carlsson & Claes Ek & Andreas Lange, 2021. "All It Takes Is One: The Effect of Weakest-Link and Summation Aggregation on Public Good Provision under Threshold Uncertainty," CESifo Working Paper Series 9457, CESifo.
    4. IGEI Kengo & KUROKAWA Hirofumi & ISEKI Masato & KITSUKI Akinori & KURITA Kenichi & MANAGI Shunsuke & NAKAMURO Makiko & SAKANO Akira, 2022. "Nudges to Increase the Effectiveness of Environmental Education: New evidence from a field experiment," Discussion papers 22111, Research Institute of Economy, Trade and Industry (RIETI).
    5. Raja Timilsina & Koji Kotani & Yoshinori Nakagawa & Tatsuyoshi Saijo, 2018. "Does deliberation change individual opinions and hence resolve the intergenerational sustainability dilemma in societies?," Working Papers SDES-2018-7, Kochi University of Technology, School of Economics and Management, revised Oct 2018.
    6. KUROKAWA Hirofumi & IGEI Kengo & KITSUKI Akinori & KURITA Kenichi & MANAGI Shunsuke & NAKAMURO Makiko & SAKANO Akira, 2022. "Nudges to Increase the Effectiveness of Environmental Education," Discussion papers 22047, Research Institute of Economy, Trade and Industry (RIETI).
    7. Astrid Dannenberg & Andreas L�schel & Gabriele Paolacci & Christiane Reif & Alessandro Tavoni, 2011. "Coordination under threshold uncertainty in a public goods game," GRI Working Papers 64, Grantham Research Institute on Climate Change and the Environment.
    8. Fredrik Carlsson & Claes Ek & Andreas Lange, 2024. "One bad apple spoils the barrel? Public good provision under threshold uncertainty," Experimental Economics, Springer;Economic Science Association, vol. 27(3), pages 664-686, July.
    9. Ben Balmford & Madeleine Marino & Oliver P. Hauser, 2024. "Voting Sustains Intergenerational Cooperation, Even When the Tipping Point Threshold is Ambiguous," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 167-190, January.
    10. Raja Rajendra Timilsina & Koji Kotani & Yoshinori Nakagawa & Tatsuyoshi Saijo, 2023. "Does Being Intergenerationally Accountable Resolve the Intergenerational Sustainability Dilemma?," Land Economics, University of Wisconsin Press, vol. 99(4), pages 644-667.
    11. Timilsina, Raja R. & Kotani, Koji & Nakagawa, Yoshinori & Saijo, Tatsuyoshi, 2022. "Intragenerational deliberation and intergenerational sustainability dilemma," European Journal of Political Economy, Elsevier, vol. 73(C).
    12. Md Tawhidul Islam & Kenta Tanaka & Koji Kotani, 2024. "Sharing information and threshold ambiguity in public bads prevention," Working Papers SDES-2024-3, Kochi University of Technology, School of Economics and Management, revised Jun 2024.

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