Work

The Coordination Value of Monetary Exchange: Experimental Evidence

Year: 2014

Type: article

Abstract: What institutions can sustain cooperation in groups of strangers? Here we study the role of monetary systems. In an experiment, subjects sometimes needed help and sometimes could incur a cost to help an anonymous counterpart. In the absence of money, the intertemporal exchange of help, which could be supported by a norm of community punishment of defectors, did not emerge. Introducing intrinsically worthless tokens substantially altered patterns of behavior. Monetary trade emerged, which increased predictability of play and promoted cooperation when strangers could trade help for a token. (JEL C71, C73, D40, E42)

Source: American Economic Journal Microeconomics

DOI: 10.1257/mic.6.1.290

Authors: Gabriele Camera, Marco Casari

Institutions: Chapman University, University of Bologna

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W3122544652

FWCI: 15.8

Cites: 61

Cited by: 58

Related to: 10