Tolerance of free-riding: The effects of defection size, defection pattern, and social orientation in a repeated public goods dilemma

Abstract

Tolerance of free riding is defined as “the extent to which group members are willing to continue cooperation after observing other members’ defection behavior in a social dilemma.” We hypothesized that defection size (number of other members who defect), defection pattern (how other members’ defection choices are repeated), and social orientation (individual preference for different distributions of resources for self and/or others) would influence members’ level of tolerance in a repeated public goods dilemma. One hundred and ten business students participated in a computerized laboratory experiment in which four conditions were created: the same one (or two) members defect over all trials—a fixed pattern, or a different one (or two) members defect on different trials—a diffused pattern. Results show that the effects of social orientation and defection size were initially significant but diminished over trials. In contrast, the effects of defection pattern became increasingly significant over trials. Specifically, we found that members’ tolerance level was significantly higher in conditions where a diffused rather than a fixed pattern of defection was observed. A “perceived impact” hypothesis was proposed to explain these results.