Abstract for: The effects of feedback and delay on punishment and cooperation in public good experiments
Despite numerous experimental studies regarding common-pool resource (CPR) problems, counterintuitive outcomes are still emerging in the economics literature, specifically concerning two commonly used treatments in these experiments, i.e., communication and punishment. Oversimplification, disregarding feedback, delay, and non-linearities in designing CPR experiments might be among the reason those phenomena are observed. In this research, we develop a system dynamics model of groundwater and agriculture, in which subjects compete for limited resources and seek to maximize their profits. The paper investigates the different role of delay and feedback on endogenous governing mechanisms, proposing that the inherent dynamics of CPR problems challenge the effectiveness of instruments such as communication and punishment. The formal model and data gathering process for future research are discussed.