Experimental Design
In our experiment, participants are randomly assigned to groups of five. Within each group, three participants are assigned the role of voters, while the remaining two are assigned the roles of Candidate. All participants receive an endowment. The candidates in each group send campaign messages to the voters. The campaign messages contain information about the tax amount. In one treatment, it also includes information about the leader’s contribution to the common fund. The campaign messages may be binding or non-binding, depending on the treatment condition. If the campaign message is binding, its contents are automatically implemented if the candidate is elected to be the leader. After the voters receive the campaign messages from the candidates, they vote for their preferred candidate. While voters are casting their votes, candidates make their final decisions about the tax amount and their own contribution to the common fund (in the case when the campaign messages are not binding). Hence, we use a strategy method and ask all candidates to state their decisions which are implemented if they are elected to be the leader. The leader is determined by majority voting. The elected leader and all group members receive their initial endowment plus a share of the total common fund whereas the non-elected candidate simply receive their initial endowment.
The participants also complete a survey, which consists of three parts. In Part I, the participants provide feedback on their understanding of the instructions and payoff calculations. They are also asked open-ended questions about the decisions they made during the experiment and their preferences (honesty and guilt aversion). In Part II, participants are randomly re-grouped into groups of five for a decision-making task. Each participant is asked to split 100 ECU between themselves and the other group members, with the allocated amount being equally distributed among the other four participants. At the end of the session, one participant from each group is randomly selected, and their decision is implemented. In Part III, the participants answer demographic questions, including gender, age, field of study, years in Australia, ethnicity, and past participation in experiments.
In our experiment, we classify three types of leader behaviors. First, if the leader makes a negative contribution to the common fund (i.e., takes form the common fund, the behavior will be classified as embezzlement. Second, if the leader makes a lower positive contribution to the common fund than the tax rate imposed on voters, the behavior will be classified as tax evasion. Finally, if the leader makes a positive contribution that is equal to the tax rate or exceeds it, the behavior will be classified as responsible.
Our main research questions are:
1. Does making campaign promises binding make elected leaders more responsible?
2. What is the impact of making campaign promises binding on voter welfare and total welfare?
3. Do non-binding campaign promises make elected leaders more responsible?
4. What is the impact of non-binding campaign promises on voter welfare and total welfare?