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Of Coordinators and Dictators: A Public Goods Experiment

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  • Jürgen Fleiß

    ()
    (Institute of Statistics and Operations Research, University of Graz, Universitätsstrasse 15, 8010 Graz, Austria)

  • Stefan Palan

    ()
    (Department of Banking and Finance, University of Innsbruck, Universitätsstrasse 15, 6020 Innsbruck, Austria
    Institute of Banking and Finance, University of Graz, Universitätsstrasse 15/F2, 8010 Graz, Austria)

Abstract

We experimentally investigate whether human subjects are willing to give up individual freedom in return for the benefits of improved coordination. We conduct a modified iterated public goods game in which subjects in each period first decide which of two groups to join. One group employs a voluntary contribution mechanism, the other group an allocator contribution mechanism. The setup of the allocator mechanism differs between two treatments. In the coordinator treatment, the randomly selected allocator can set a uniform contribution for all group members, including herself. In the dictator treatment, the allocator can choose different contributions for herself and all other group members. We find that subjects willingly submit to authority in both treatments, even when competing with a voluntary contribution mechanism. The allocator groups achieve high contribution levels in both treatments.

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Bibliographic Info

Article provided by MDPI, Open Access Journal in its journal Games.

Volume (Year): 4 (2013)
Issue (Month): 4 (October)
Pages: 584-607

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Handle: RePEc:gam:jgames:v:4:y:2013:i:4:p:584-607:d:29379

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Related research

Keywords: allocator; public goods game; self-selection; institution choice; power;

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Cited by:
  1. Jason Shachat & J. Todd Swarthout, 2013. "Auctioning the right to play ultimatum games and the impact on equilibrium selection," Experimental Economics Center Working Paper Series 2013-01, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.

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