The value of non-binding announcements in public goods experiments: Some theory and experimental evidence
AbstractThe paper presents a simple theoretical framework to explain the influence of the possibility to make non-binding announcements on investment behaviour in public goods settings. Our model builds on the idea that voluntary contributions to the supply of a public good might be motivated by some form of joy of giving. We show that the possibility to make non-binding announcements has a positive effect on cooperative behaviour, especially if individual announcements and factual investments are communicated to the players after each round. We also show that this result holds true even though the players have an incentive to overstate their true degrees of cooperativeness. Altogether, our theoretical considerations point in the direction that revealing as much information on individual intentions and factual behaviour as possible enhances cooperative behaviour. These conclusions are broadly confirmed by the results of a series of classroom experiments we present.
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Bibliographic InfoArticle provided by Elsevier in its journal The Journal of Socio-Economics.
Volume (Year): 38 (2009)
Issue (Month): 3 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620175
Public goods Announcements Joy of giving Experimental economics;
Other versions of this item:
- Markwardt, Gunther & Dittrich, Marcus & Berlemann, Michael, 2004. "The Value of Non-Binding Announcements in Public Goods Experiments: some Theory and Experimental Evidence," Dresden Discussion Paper Series in Economics 03/04, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
- Michael Berlemann & Marcus Dittrich & Gunther Markwardt, 2004. "The Value of Non-Binding Announcements in Public Goods Experiments: Some Theory and Experimental Evidence," CESifo Working Paper Series 1352, CESifo Group Munich.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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