Browsing by Author "Haileselassie, Medhin"

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    Framing and Minimum Levels in Public Good Provision
    (2016-04) Martinsson, Peter; Haileselassie, Medhin; Persson, Emil; Dept. of Economics, University of Gothenburg
    Using a laboratory experiment in the field, we examine how the choice architecture of framing a social dilemma – give to or take from a public good – interacts with a policy intervention that enforces a minimum contribution level to the public good. We find that cooperation is significantly higher in the give frame than in the take frame in our standard public goods experiment. When a minimum contribution level is introduced, contributions are significantly higher in the take frame since contributions are crowded out in the give frame but crowded in in the take frame. Our results therefore stress the importance of choosing the frame when making policy recommendations.