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(Un)Trustworthy Pledges and Cooperation in Social Dilemmas

Goeschl, Timo ; Soldà, Alice

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Abstract

Pledges feature in international climate cooperation since the 2015 Paris Agreement. We explore how differences in pledgers' trustworthiness affect outcomes in a social dilemma that parallels climate change. In an online experiment, two participants interact with a randomly matched third player in a repeat maintenance game with a pledge stage. Treatments vary whether participants are matched with a player that is more or less trustworthy as revealed by behavior in a promise-keeping game; and whether they observe that trustworthiness. We find that participants knowingly matched with more trustworthy players cooperate more than participants matched with less trustworthy players (knowingly or unknowingly), but also more than participants unknowingly matched with more trustworthy players. In contrast, participants knowingly matched with less trustworthy players do not cooperate less than participants who are unknowingly so. Our findings suggest that the use of pledges, as per the Paris Agreement, can leverage the power of trustworthiness to enhance cooperation.

Document type: Working paper
Series Name: Discussion Paper Series / University of Heidelberg, Department of Economics
Volume: 0728
Place of Publication: Heidelberg
Date Deposited: 15 May 2023 14:06
Date: 2023
Number of Pages: 52
Faculties / Institutes: The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics
DDC-classification: 330 Economics
Controlled Keywords: cooperation, credibility, group formation
Uncontrolled Keywords: social dilemmas, pre-play communication; pledges
Series: Discussion Paper Series / University of Heidelberg, Department of Economics
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