NON‐MONETARY INCENTIVES AND OPPORTUNISTIC BEHAVIOR: EVIDENCE FROM A LABORATORY PUBLIC GOOD GAME

This study reports data from a laboratory experiment that investigates the incentive effect of three distinct social communication schemes on free‐riding behavior. We use performance‐based approval and disapproval ratings and a linear public good game to address the above issues. The treatments vary in terms of subjects' opportunities to anonymously assign (1) only the approval ratings to other group members, (2) only the disapproval ratings to other group members, and (3) either the approval or the disapproval ratings to other group members (but not both to the same group member), after they play a standard linear public good game. Despite the Nash prediction of zero individual contribution in all three treatments, the data show that the disapproval points generate significantly higher contribution than the approval points. The treatment in which subjects could communicate either the approval or the disapproval points produces the highest level of contribution. We discuss the implications that these findings may have for efficient design of organizations. (JEL D03, H41, C72, C92)     

CAN'T BUY ME LOVE? A FIELD EXPERIMENT EXPLORING THE TRADE‐OFF BETWEEN INCOME AND CASTE‐STATUS IN AN INDIAN MATRIMONIAL MARKET

A large body of literature depicts that status‐based discrimination is pervasive, but is silent on how economic incentive interacts with such discrimination. This study addresses this question by designing a field experiment in a reputable arranged marriage market that is prone to strong caste‐status‐based discrimination. We place newspaper advertisements of potential grooms by systematically varying their caste and income and focus on responses of higher‐caste females to lower‐caste males. The substantive finding is that despite the evidence of discrimination, discriminatory behavior of higher‐status females decreases with an increase in the advertised monthly income of lower‐status males. (JEL C93, J12, J15)