Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257565 
Year of Publication: 
2021
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 12 [Issue:] 4 [Article No.:] 83 [Publisher:] MDPI [Place:] Basel [Year:] 2021 [Pages:] 1-14
Publisher: 
MDPI, Basel
Abstract: 
This paper studies the standard version of the approval mechanism with two players in a common pool resource (CPR) extraction game. In the case of disapproval, the Nash extraction level is implemented. The paper investigates, experimentally, the extent to which the Nash threat leads to Pareto-improving extraction levels. Through our experiment, we confirm the effectiveness of the Nash threat in reducing CPR over-extraction. Although participants' behavior is mainly explained by rational thinking, inequity in payoff can also motivate their behavior. Moreover, we show that there is neither an order effect nor a framing effect. Finally, the reduction persists when the Nash threat is no longer in place.
Subjects: 
approval mechanism
common pool resource
laboratory group behavior
JEL: 
C71
C72
C92
N5
D02
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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