“Show the right thing to do”. The effect of exemplary behavior in public good games

Using a linear public good game we investigate the role of exemplary behavior on cooperation in public goods games. Subjects face the chance of show a good (like the employee of the month) or a bad example (evading taxes) to the rest of their group, knowing in advance that the unique feedback they will get back is the largest (or smallest) contribution to the group project. Our results suggest that immaterial incentives have a positive though transitory effect on contribution. Even when they do not alter the game structure or its theoretical prediction, exemplary behavior increases cooperation; especially on top contributors who react strongly to the chance of becoming good examples.