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Securing property rights: A dilemma experiment in Austria, Mexico, Mongolia, South Korea and the United States

Author

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  • Ahn, T.K.
  • Balafoutas, Loukas
  • Batsaikhan, Mongoljin
  • Campos-Ortiz, Francisco
  • Putterman, Louis
  • Sutter, Matthias
Abstract
Secure property rights result from a combination of public enforcement, private protective measures, and voluntary norm-compliance. We conduct a laboratory experiment to study how culture interacts with institutions in shaping individuals' behaviors and group outcomes in a property rights dilemma. The experiment is conducted in five countries: Austria, Mexico, Mongolia, South Korea and the United States. We find that the security of property varies with the experimentally available institutions and country-level indicators such as trust and quality of government. Subjects from countries with higher levels of trust are more likely to abstain initially from theft, devote more resources to production and support funding public protection of property through taxation. Our findings highlight the relevance of cultural and institutional factors, and their interaction, in addressing the collective action problem of safeguarding property rights.

Suggested Citation

  • Ahn, T.K. & Balafoutas, Loukas & Batsaikhan, Mongoljin & Campos-Ortiz, Francisco & Putterman, Louis & Sutter, Matthias, 2016. "Securing property rights: A dilemma experiment in Austria, Mexico, Mongolia, South Korea and the United States," Journal of Public Economics, Elsevier, vol. 143(C), pages 115-124.
    • Handle: RePEc:eee:pubeco:v:143:y:2016:i:c:p:115-124
    DOI: 10.1016/j.jpubeco.2016.08.015
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    Cited by:

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    3. Alexandra Baier & Loukas Balafoutas & Tarek Jaber-Lopez, 2023. "Ostracism and theft in heterogeneous groups," Experimental Economics, Springer;Economic Science Association, vol. 26(1), pages 193-222, March.
    4. Konstantin Chatziathanasiou & Svenja Hippel & Michael Kurschilgen, 2021. "Property, redistribution, and the status quo: a laboratory study," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 919-951, September.
    5. Carlos A. Chávez & James J. Murphy & John K. Stranlund, 2021. "Co-enforcement of Common Pool Resources to Deter Encroachment: Evidence from a Field Experiment in Chile," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 425-450, October.
    6. Mongoljin Batsaikhan & Louis Putterman, 2019. "An Honest Day's Pay: Cooperation among Entrepreneurs vs. Students, and Linkages to Real‐World Business Success," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 478-502, October.
    7. Buckley, R.C. & Guitart, D. & Shakeela, A., 2017. "Contested surf tourism resources in the Maldives," Annals of Tourism Research, Elsevier, vol. 64(C), pages 185-199.
    8. Boyce, John R. & Bruner, David M., 2017. "Conflict resolution through voluntary provision of property protection," Journal of Economic Psychology, Elsevier, vol. 63(C), pages 199-215.

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