The next RITM Economics Seminar will take place on Monday 20 November, in Imbert (Jean Monnet – 54 boulevard Desgranges – 92330 Sceaux) from 12:00 to 13:00.
Nicolas Jacquemet (U. Paris 1 – PSE) will present “Learning, Spillovers and Persistence: Institutions and the Dynamics of Cooperation” (with R. Galbiati et E. Henry).
Abstract : We study how cooperation-enforcing institutions dynamically affect values and behavior using a lab experiment designed to create individual specific histories of past institutional exposure. We show that the effect of past institutions is mostly due to ” indirect ” behavioral spillovers: facing penalties in the past increases partners’ cooperation in the past, which in turn positively affects ones’ own current behavior. We demonstrate that such indirect spillovers induce persistent effects of institutions. However, for interactions that occur early on, we find a negative effect of past enforcement due to differential learning under different enforcement institutions.