Identification of Other-Regarding Preferences: Evidence from a Common Pool Resource Game in Colombia

33 Pages Posted: 23 Jul 2015 Last revised: 26 Mar 2019

See all articles by Sandra Polania-Reyes

Sandra Polania-Reyes

Pontificia Universidad Javeriana; Kellogg Institute for International Studies

David Echeverry

University of Notre Dame - Mendoza College of Business

Date Written: February 14, 2019

Abstract

Intrinsic motivation is shaped by attitudes towards others. In spite of their potential relevance for policy design, identifying individual preference types beyond population distributions remains a challenge. We use data from a common pool resource (CPR) game in the fi eld (935 individuals, 25% students and 75% real CPR users) to identify individual types through a structural, latent class logistic model including preferences for altruism, reciprocity and equity. Type determinants include sociodemographic and attitudinal characteristics of the participant. We expose different types to various incentives (economic and non-economic) to shed light on the interaction between intrinsic and extrinsic motives.

A competing explanation to social preferences is errors leading to random behavior, especially among CPR users who lack formal education. The rationality parameter estimated from a quantal response equilibrium model reveals little difference between university students and villagers. The evidence against cognitive differences provides further support for the role of heterogeneity in preferences.

Keywords: Common-pool resources, social preferences, laboratory and field experiments, explicit incentives, inequity aversion, latent heterogeneity, finite mixture models

JEL Classification: Q2, C51, C23, C93, D64, H39, H41

Suggested Citation

Polania-Reyes, Sandra and Echeverry, David, Identification of Other-Regarding Preferences: Evidence from a Common Pool Resource Game in Colombia (February 14, 2019). Available at SSRN: https://ssrn.com/abstract=2634244 or http://dx.doi.org/10.2139/ssrn.2634244

Sandra Polania-Reyes (Contact Author)

Pontificia Universidad Javeriana ( email )

Colombia

HOME PAGE: http://spolaniareyes.github.io/

Kellogg Institute for International Studies ( email )

130 Hesburgh Center
Notre Dame, IN 46556
United States

David Echeverry

University of Notre Dame - Mendoza College of Business ( email )

Notre Dame, IN 46556-5646
United States

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