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Environmental policies and enforcement pose fundamental corruption issues relating to the tensions between economic self-interest and the public good. By directing our attention to the challenges of collective action, they also highlight the importance of state-level institutional and political characteristics – notably, the political clout of industrial and environmental lobby groups. High levels of corruption and low levels of trust both weaken the stringency and enforcement of environmental policies and affect levels of emissions, although as levels of trust in a state increase, the effects of corruption weaken or vanish. Our environmental findings closely parallel those in other chapters having to do with COVID policies – not surprising, as they raise similar questions of policy and compliance – and support our argument that thinking solely in terms of specific acts of rule- or law-breaking is an incomplete understanding of corruption, its causes, and its consequences.
We develop a model that relates self-control to cooperation patterns in social dilemmas, and we test the model in a laboratory public goods experiment. As predicted, we find a robust association between stronger self-control and higher levels of cooperation, and the association is at its strongest when the decision maker’s risk aversion is low and the cooperation levels of others high. We interpret the pattern as evidence for the notion that individuals may experience an impulse to act in self-interest—and that cooperative behavior benefits from self-control. Free-riders differ from other contributor types only in their tendency not to have identified a self-control conflict in the first place.
Three effects of apparently superficial changes in presentation (“framing effects” in abroad sense), were replicated together in the same repeated linear public goods experiment with real financial incentives. First, 32 repetitions were presented as four phases of 8 repetitions with a break and results summary in between. Contribution levels decayed during each phase but then persistently returned to about 50% after each re-start. Second, subjects contributed more when the payoff function was decomposed in terms of a gift which is multiplied and distributed to the other players, rather than the equivalent public good from which everyone benefits. Third, subjects contributed more following a comprehension task which asks them to calculate the benefits to the group of various actions (the “We” frame), rather than the benefits to themselves (the “I” frame). These results suggest that aspects of presentation may have strong and replicable effects on experimental findings, even when care is taken to make the language and presentation of instructions as neutral as possible. Experimental economists should therefore give careful consideration to potential framing effects—or, better still, explicitly test for them—before making claims about the external validity of results.
We replicate Andreoni (Quarterly Journal of Economics 110: 1–21, 1995)’s finding that agents behave more selfishly when taking from a public account than when giving to a public good. Based on a neutral language setting we add new insights into motivations to give or take in a linear public good setting: we find that Andreoni’s result is partly driven by the complete elimination of giving options in the taking frame. However, a pure extension of the action space into the taking domain also leads to a significant increase in selfish behavior.
Many experiments have demonstrated the power of norm enforcement— peer monitoring and punishment—to maintain, or even increase, contributions in social dilemma settings, but little is known about the underlying norms that monitors use to make punishment decisions, either within or across groups. Using a large sample of experimental data, we empirically recover the set of norms used most often by monitors and show first that the decision to punish should be modeled separately from the decision of how much to punish. Second, we show that absolute norms often fit the data better than the group average norm often assumed in related work. Third, we find that different norms seem to influence the decisions about punishing violators inside and outside one's own group.
This paper provides a comparative-statics analysis of punishment in public-good experiments. We vary the effectiveness of punishment, that is, the factor by which punishment reduces the punished player's income. The data show that contributions increase monotonically in punishment effectiveness. High effectiveness leads to near complete cooperation and welfare improvements. Below a certain threshold, however, punishment cannot prevent the decay of cooperation. In these cases, punishment opportunities reduce welfare. The results suggest that the experimenter's choice of the punishment effectiveness is of great importance for the experimental outcome.
We present experimental evidence for decision settings where public good providers compete for endogenous rewards which are donations (transfers) offered by outside donors. Donors receive benefits from public good provision but cannot provide the good themselves. The performance of three competition mechanisms is examined in relation to the level of public good provision and transfers offered by donors. In addition to a contest where transfers received by public good providers are proportional to effort, we study two contests with exclusion from transfers, namely a winner-takes-all and a loser-gets-nothing. We compare behavior in these three decision settings to the default setting of no-contest (no-transfers). Results for this novel decision environment with endogenous transfers show that donors offer transfers (contest prizes) at similar levels across contests and contributions to the public good are not significantly different in the three contests settings, but are consistently and significantly higher in all contests compared to the setting with no-transfers. Initially, the winner-takes-all setting leads to a significantly higher increase in public good contributions compared to the other two contests; but this difference diminishes across decision rounds.
This paper investigates the effectiveness of peer punishment in non-linear social dilemmas and replicates Cason and Gangadharan (Exp Econ 18:66–88, 2015). The contribution of this replication is that cooperation is quantified across payoff equivalent, strategically symmetric public good and common pool resource experiments. Results suggest that the cooperation-inducing effect of peer punishment is statistically equivalent across conditions. Despite this increase in cooperation, earnings are significantly lower than in the absence of punishment. Institutional features which improve the effectiveness of peer punishment in linear public good experiments may, similarly, make self-governance possible in more complex social dilemmas.
A number of recent papers have looked at framing effects in linear public good games. In this comment, I argue that, within this literature, the distinction between give-take and positive–negative framing effects has become blurred, and that this is a barrier towards understanding the experimental evidence on framing effects. To make these points, I first illustrate that frames can differ along both an externality and choice dimension. I then argue that the existing evidence is consistent with a strong positive–negative framing effect but no give-take framing effect on average contributions.
We establish whether the efficacy of mutual monitoring in fostering cooperation is dependent on the degree of approval motivation within teams. Approval motivation is defined as the desire to produce positive perceptions in others and the incentive to acquire the approval of others as well as the desire to avoid disapproval, (Martin in J Personality Assess 48(5):508–519, 1984). Contrary to the theoretical predictions, the results from the experiment suggest that mutual monitoring was not effective in fostering cooperation in teams. Furthermore, the efficacy of mutual monitoring in fostering cooperation was not correlated with the degree of approval motivation within teams.
The Political Economy of Education provides academically rigorous yet clear explanations of the economics and politics driving today's educational systems and how economists analyze them. The book covers a host of topics central to teaching about education and crucial to educational policy. These include how to use the tools of economic and political theory to take critical measure of education's role in social mobility and economic growth, whether good teachers can overcome social class and race achievement gaps, the effectiveness of early childhood and vocational education, and debates on school accountability and whether increasing spending on schooling improves quality. The book also explores worldwide changes in higher education, especially massification and increased stratification and privatization. Written for upper undergraduate and graduate students in economics, public policy, and education and packed with real-world examples, this is an essential text for anyone interested in gaining fresh and international perspectives on education.
Communication is well-known to increase cooperation rates in social dilemma situations, but the exact mechanisms behind this remain largely unclear. This study examines the impact of communication on public good provisioning in an artefactual field experiment conducted with 216 villagers from small, rural communities in northern Namibia. In line with previous experimental findings, we observe a strong increase in cooperation when face-to-face communication is allowed before decision-making. We additionally introduce a condition in which participants cannot discuss the dilemma but talk to their group members about an unrelated topic prior to learning about the public good game. It turns out that this condition already leads to higher cooperation rates, albeit not as high as in the condition in which discussions about the social dilemma are possible. The setting in small communities also allows investigating the effects of pre-existing social relationships between group members and their interaction with communication. We find that both types of communication are primarily effective among socially more distant group members, which suggests that communication and social ties work as substitutes in increasing cooperation. Further analyses rule out better comprehension of the game and increased mutual expectations of one’s group members’ contributions as drivers for the communication effect. Finally, we discuss the role of personal and injunctive norms to keep commitments made during discussions.
The right to free expression is of special importance for any discussion of the legal and social enforcement of morality. This is true for two main sets of reasons. First, the free expression and communication of ideas in a political society profoundly affects its ethical environment. The right to free expression, or more precisely the social condition that is brought about by the adequate recognition and protection of the right, is itself a public good. Second, the free expression and communication of ideas, especially ideas relevant to politics, is widely considered to be a condition of government legitimacy. Governments that wrongly deny their subjects the right to freely express their ideas forfeit a claim to rule over them. This chapter engages with both sets of reasons, which are referred to as the public good consideration and the legitimacy consideration, respectively, with an eye toward clarifying the grounds of the right to free expression and the limits to its scope. The chapter pays special attention to the issue of whether the right to free expression extends to so-called dangerous speech; that is, speech that advocates for violence against the government and/or certain targeted groups.
This chapter explores the entanglement of the process to inaugurate the Casa de Correção with the political crisis that culminated in the suppression of the slave trade after 1850. I argue that the inauguration of the penitentiary in 1850 belongs to the articulation of policies to restructure slavery geographically in Brazil as the country moved decisively, under considerable British pressure, to suppress the contraband slave trade. The chapter probes the July 1850 decree that regulated the Casa de Correção as Brazil’s first penitentiary. It contends that the continued utilization of unfree labor proved to be a crucial part of the campaign to repress the slave trade and the entangled processes through which authorities deployed the prison to administer the ripple effects of the ending of human trafficking. I also interrogate how administrators of the Casa de Correção struggled to implement the congregate regime for prisoners sentenced to “prison with work” while overseeing its other dependencies. This demonstrates how penitentiary labor was deeply shaped by larger societal and economic forces of the Atlantic World.
The chapter provides an overview of the infrastucture concept and argues that it is both an economic and a political concept. It provides an overview of the interdisciplinary literature on infrastructure since the 1990s and situates the book in the debate about laissez-faire and the literature on the American state, taking the side of those who have argued in favor of deeper roots of the American state in the nineteenth century. It also provides chapter summaries and overviews.
In Privatization and Its Discontents, Matthew Titolo situates the contemporary debate over infrastructure in the long history of public–private governance in the United States. Titolo begins with Adam Smith's arguments about public works and explores debates over internal improvements in the early republic, moving to the twentieth-century regulatory state and public-interest liberalism that created vast infrastructure programs. While Americans have always agreed that creation and oversight of 'infrastructure' is a proper public function, Titolo demonstrates that public–private governance has been a highly contested practice throughout American history. Public goods are typically provided with both government and private actors involved, resulting in an ideological battle over the proper scope of the government sphere and its relationship to private interests. The course of that debate reveals that 'public' and 'private' have no inherent or natural content. These concepts are instead necessarily political and must be set through socially negotiated compromise.
This article analyzes an 1869 law from Cisleithania that defined all running waters as public goods. Economic and political actors debated the issue of water rights over several decades in the mid-nineteenth century, as is shown in contemporary publications, proceedings of assemblies, and administrative archives. The legal solution that was ultimately adopted established the management of water rights and uses according to a particular form of property which was intentionally preferred over a system of private appropriation. Looking in detail at what “public good” meant for the actors, this article argues that settling the legal status of rivers served to both consolidate the imperial state's power over society and to make water resources available to a productivist economic system. The new relationships to the environment that emerged during this time were inseparable from contemporary political and economic developments, and legislating was one way to bind these aspects together. Moreover, the case of water rights in the Habsburg Empire adds nuance to binary oppositions between private property and commons that dominate the study of property regimes and environment today. It invites us to consider how the establishment of a productivist economic system rested on a combination of different forms of property and strong state intervention.
In an ideal world, our research efforts would be omnific in nature, pursuing every conceivable scientific trajectory to understand the world with near-perfect precision. But limited by resources, this world does not exist. While we are nowhere near this state of omniscience, our understanding of the mechanisms by which medical science progresses have increased substantially over time. In fact, this knowledge is only likely to grow. The question is, given our knowledge of what influences the rate and direction, are we morally obligated to act upon this knowledge and adjust the trajectory? Chapter 23 reflects on whether medical science is truly morally neutral, the social role of science more broadly, and how we should define "true" progress in medical science going forward.
Chapter 9 is about how public institutions contribute to the trajectory of progress. The most common methods for public involvement are through creating institutions (universities, research facilities, etc.) and through distributing grants. There are any number of combinations by which governments and public institutions can give out grants, with each country having their own unique variation. These mechanisms are crucial in determining the rate and direction of progress. By supporting certain research areas, we commit to making progress in one area while potentially reducing it in others. The chapter is also concerned with how public funding differs from private funding, how important public funding is in steering the direction of research towards areas directly relevant to the common person, and how public funding has become more commercialized.
The goal of the final chapter is to examine the central role of necessities in the epistemological, moral and political theory of An Essay of Human Understanding and of the Two Treatises of Government. A study of the former shows Locke’s preoccupation with classical moral questions such as happiness and the ‘good objects of desires’ and how necessities helped him to strike a balance between tradition and the new science. As a rule of thumb of proper conduct, knowledge of necessities leads to the preservation of life, a human being’s most important duty to God. His doctrine of necessities is what made it possible for Locke to develop the theory of the public good with which, it is argued, he attempted to defeat the egoist theory of self-interest. Examination of his conception of property and money through the lens of human necessities shows a certain ambiguity in Locke’s normative ideals. Nevertheless, my conclusion is that above other considerations underlying the capital-oriented ideals of the period, the last word of Locke’s political theory is the public good represented by preservation and convenience for the commonwealth and, when possible, for the whole of humanity.