The effect of announcing future institutional change is investigated in three different contexts: a gains frame, a loss frame, and a loss frame with risk. The institutional change is the transition from a normal public goods game (PGG) into a threshold public goods game (TPGG). Announcements may change subject behavior, through influencing their expectations, before the implementation of the new institution (adjustment effect) and/or after the implementation (adaptation effect).
Book Title: Behavioral Economics and the Environment
Humans have long neglected to fully consider the impact of their behavior on the environment. From excessive consumption of fossil fuels and natural resources to pollution, waste disposal, and, in more recent years, climate change, most people and institutions lack a clear understanding of the environmental consequences of their actions. The new field of behavioral environmental economics seeks to address this by applying the framework of behavioral economics to environmental issues, thereby rationalizing unexplained puzzles and providing a more realistic account of individual behavior.
This book is a comprehensive and innovative tool for researchers and students interested in the behavioral economics of the environment and in the design of policy interventions aimed at reducing the human impact on the environment.