Family Culture and Cooperative Behavior in Transition Economies

by Zafar Kurbanov


Abstract

Currently, there is a hot debate on the prevalence of pro-social behavior (cooperation, honesty, reciprocity, etc) in market and transition economies. Some authors found that people exhibit more pro-social behavior in market economies as rules of exchange become norm. On the other hand, pro-social behavior tends to persist in transition economies, especially the ones that had socialistic and collectivistic regime prior to sovereignty. First, we argue that pro-social behavior depends on culture, particularly family culture and traditions irrespective of the country development stage. Second, we posit that pro-social behavior is likely to decline in the face of competition among people; this drop is expected to be larger for market economies. To examine these hypothesis the authors use multi-stage ultimatum and public goods game in a laboratory setting involving university students from Westminster International University in Tashkent and University of Westminster.