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Matching contributions and the voluntary provision of a pure public good: Experimental evidence

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  • Baker II, Ronald J.
  • Walker, James M.
  • Williams, Arlington W.

Abstract

Laboratory experiments are used to study the voluntary provision of a pure public good in the presence of an anonymous external donor. The external funds are used in two different settings, lump-sum matching and one-to-one matching, to examine how allocations to the public good are affected. The experimental results reveal that allocations to the public good under lump-sum matching are significantly higher and have significantly lower within-group dispersion relative to one-to-one matching and two baseline settings without external matching funds. In addition, a comparison of the two baseline conditions reveals a positive framing effect on public goods allocations when it is explicitly revealed to subjects that an outside source has made an unconditional allocation to the public good.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 70 (2009)
Issue (Month): 1-2 (May)
Pages: 122-134

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Handle: RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:122-134

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Laboratory experiments Public goods Matching;

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References

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  1. Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2007. "Leading-by-example and signaling in voluntary contribution games: An experimental study," Open Access publications from Tilburg University urn:nbn:nl:ui:12-302954, Tilburg University.
  2. Craig Landry & Andreas Lange & John List & Michael Price & Nicholas Rupp, 2006. "Toward an understanding of the economics of charity: Evidence from a field experiment," Natural Field Experiments 00292, The Field Experiments Website.
  3. Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December.
  4. Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2001. "Why Announce Leadership Contributions? An Experimental Study of the Signaling and Reciprocity Hypotheses," Discussion Paper 2001-100, Tilburg University, Center for Economic Research.
  5. List, John A. & Rondeau, Daniel, 2003. "The impact of challenge gifts on charitable giving: an experimental investigation," Economics Letters, Elsevier, vol. 79(2), pages 153-159, May.
  6. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March.
  7. Douglas D. Davis, 2006. "Rebate subsidies, matching subsidies and isolation effects," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 13-22, July.
  8. Marks, Melanie & Croson, Rachel, 1998. "Alternative rebate rules in the provision of a threshold public good: An experimental investigation," Journal of Public Economics, Elsevier, vol. 67(2), pages 195-220, February.
  9. James Andreoni, 2006. "Leadership Giving in Charitable Fund-Raising," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(1), pages 1-22, 01.
  10. John A. List & David Lucking-Reiley, 2000. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Vanderbilt University Department of Economics Working Papers 0008, Vanderbilt University Department of Economics.
  11. Isaac, R. Mark & Walker, James M. & Williams, Arlington W., 1994. "Group size and the voluntary provision of public goods : Experimental evidence utilizing large groups," Journal of Public Economics, Elsevier, vol. 54(1), pages 1-36, May.
  12. repec:feb:artefa:0090 is not listed on IDEAS
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Citations

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Cited by:
  1. Ronald J. Baker II & James M. Walker & Ioana Schiopu, 2010. "External Matching Funds and the Provision of Public Goods: An Experimental Study," Caepr Working Papers 2010-003, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
  2. Alexander Smith, 2013. "Estimating the causal effect of beliefs on contributions in repeated public good games," Experimental Economics, Springer, vol. 16(3), pages 414-425, September.
  3. Vossler, Christian A., 2009. "Analyzing repeated-game economics experiments: robust standard errors for panel data with serial correlation," MPRA Paper 38862, University Library of Munich, Germany.
  4. Carlsson, Fredrik & Johansson-Stenman, Olof & Pham Khanh, Nam, 2011. "Funding a New Bridge in Rural Vietnam: A field experiment on conditional cooperation and default contributions," Working Papers in Economics 503, University of Gothenburg, Department of Economics.
  5. Baker, Ronald J. & Walker, James M. & Williams, Arlington W., 2011. "An exploration of the robustness of alternative laboratory methodologies: Matching funds and the provision of public goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 763-774.

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