ABSTRACT
A recurring theme in the study of social interaction is the conflict between maximizing individual and collective outcomes. This conflict is studied by social psychologists under the social dilemma paradigm (Dawes, 1980; Liebrand, 1984). Ledyard (1995) proposed that social dilemma experiments could be studied within a mechanism design framework that distinguishes between five components: the environment of the decision situation, the final outcomes of the participants, the performance criteria that induce an order over all possible outcomes, the institutions (or protocols) that define mechanisms for aggregating information and coordinating actions, and the models of behavior of the participants.
