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researchgate.net

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mdpi.com

MDPI is a publisher of peer-reviewed, open access journals since its establishment in 1996.

sci-hub.se

sci-hub website. get free access to academic journals. download research papers for free from sciencedirect, ieee, wiley, springer, nature and others

archive.org

internet archive is a non-profit digital library offering free universal access to texts, movies & music, as well as 624 billion archived web pages.

tandfonline.com

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mybib.com

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jstor.org

jstor is a digital library of academic journals, books, and primary sources.

overleaf.com

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arxiv.org

A system of non-tradable credits that flow between individuals like karma, hence proposed under that name, is a mechanism for repeated resource allocation that comes with attractive efficiency and fairness properties, in theory. In this study, we test karma in an online experiment in which human subjects repeatedly compete for a resource with time-varying and stochastic individual preferences or urgency to acquire the resource. We confirm that karma has significant and sustained welfare benefits even in a population with no prior training. We identify mechanism usage in contexts with sporadic high urgency, more so than with frequent moderate urgency, and implemented as a simple (binary) karma bidding scheme as particularly effective for welfare improvements: relatively larger aggregate efficiency gains are realized that are (almost) Pareto superior. These findings provide guidance for further testing and for future implementation plans of such mechanisms in the real world.