Electronic copy available at: http://ssrn.com/abstract=2634244 Identification of Other-regarding Preferences: Evidence from a Common Pool Resource game in Colombia ∗ Sandra Polan´ ıa-Reyes University College London † David Echeverry University of California Berkeley ‡ March 27th, 2015 Abstract Social preferences have been important to the explanation of deviations from Nash equilibrium in game outcomes. An enduring challenge in any model of other-regarding preferences is to identify heterogeneity within the population. Using data from a com- mon pool resource (CPR) game in the field with 1, 095 individuals (21% students and 79% villagers, users of a CPR) we estimate a structural model including preferences for altruism, reciprocity and equity. We identify behavioral types using a latent class logit model. Exogenous determinants of type are examined such as socio-economic characteristics, perceptions on the CPR, perceived interest in cooperation among the community, whether the participant does volunteer work and whether the CPR is the household main economic activity of the household. A competing explanation of deviations from Nash equilibrium is the existence of a cog- nitive factor: the construction of a best reply might make rational expectations about other players’ mistakes (e.g. quantal response equilibrium). Whilst a cognitive aspect would help the model better fit the data, we do not find much evidence for cognitive heterogeneity, and instead a great deal of behavioral heterogeneity. Choice prediction based on types is robust out of sample. JEL classification: Q2, C51, C23, C93, D64, H39, H41. Keywords: Common-pool resources, social preferences, laboratory and field experiments, explicit incentives, inequity aversion, latent heterogeneity, finite mixture models. ∗ We thank Juan-Camilo C´ ardenas, Shachar Kariv and C ´ esar Mantilla for valuable comments and sugges- tions. We also thank workshop participants at BABEW (Stanford University) as well as conference participants at IAAE (Queen Mary University) and University of G¨ ottingen for helpful comments. † Email: sandra.polania-reyes.09@ucl.ac.uk. I am grateful to my advisors Orazio Attanasio, Sam Bowles and Syngjoo Choi. I thank Juan Camilo C´ ardenas, Steffen Huck, Adriana Molina and Ana Ma. Rold ´ an. I acknowledge financial support to the field work from the MacArthur Foundation, University of los Andes and Javeriana University in Colombia. ‡ Email: david.echeverry@berkeley.edu. 1