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Step Returns in Threshold Public Goods: A Meta- and Experimental Analysis

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Author Info
Rachel Croson
Melanie Marks

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Abstract

One important determinant of voluntary contributions to public goods is the value of the public good relative to that of the forgone private good. Isaac, Walker and Thomas (1984) formalized this relation in the Marginal Per Capita Return (MPCR) and demonstrated its influence on the provision of linear public goods. This paper develops a parallel concept, in the context of a threshold public good, the Step Return (SR). After providing a meta-analysis of the effect of SR in previous experiments, we compare contributions in threshold public goods games with low, medium and high SRs. Results show that subjects respond to the SR in this setting just as they respond to the MPCR in the linear public goods setting: higher SRs lead to more contributions. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1009918829192
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Publisher Info
Article provided by Springer in its journal Experimental Economics.

Volume (Year): 2 (2000)
Issue (Month): 3 (March)
Pages: 239-259
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Handle: RePEc:kap:expeco:v:2:y:2000:i:3:p:239-259

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Related research
Keywords: threshold public good; provision point mechanism; experiment; meta-analysis;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. Bram Cadsby, Charles & Maynes, Elizabeth, 1998. "Choosing between a socially efficient and free-riding equilibrium: Nurses versus economics and business students," Journal of Economic Behavior & Organization, Elsevier, vol. 37(2), pages 183-192, October. [Downloadable!] (restricted)
  3. Rose, Steven K. & Clark, Jeremy & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D., 2002. "The private provision of public goods: tests of a provision point mechanism for funding green power programs," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 131-155, February. [Downloadable!] (restricted)
  4. Palfrey, Thomas R. & Rosenthal, Howard, 1991. "Testing for effects of cheap talk in a public goods game with private information," Games and Economic Behavior, Elsevier, vol. 3(2), pages 183-220, May. [Downloadable!] (restricted)
  5. Rapoport, Amnon & Eshed-Levy, Dalit, 1989. "Provision of step-level public goods: Effects of greed and fear of being gypped," Organizational Behavior and Human Decision Processes, Elsevier, vol. 44(3), pages 325-344, December. [Downloadable!] (restricted)
  6. Bagnoli, Mark & McKee, Michael, 1991. "Voluntary Contribution Games: Efficient Private Provision of Public Goods," Economic Inquiry, Oxford University Press, vol. 29(2), pages 351-66, April.
  7. Marks, Melanie B & Croson, Rachel T A, 1999. " The Effect of Incomplete Information in a Threshold Public Goods Experiment," Public Choice, Springer, vol. 99(1-2), pages 103-18, April. [Downloadable!] (restricted)
  8. Bram Cadsby, C. & Maynes, Elizabeth, 1998. "Gender and free riding in a threshold public goods game: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 34(4), pages 603-620, March. [Downloadable!] (restricted)
  9. Asch, Peter & Gigliotti, Gary A & Polito, James A, 1993. " Free Riding with Discrete and Continuous Public Goods: Some Experimental Evidence," Public Choice, Springer, vol. 77(2), pages 293-305, October.
  10. Rondeau, Daniel & D. Schulze, William & Poe, Gregory L., 1999. "Voluntary revelation of the demand for public goods using a provision point mechanism," Journal of Public Economics, Elsevier, vol. 72(3), pages 455-470, June. [Downloadable!] (restricted)
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  11. Rapoport, Amnon & Suleiman, Ramzi, 1993. "Incremental Contribution in Step-Level Public Goods Games with Asymmetric Players," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(2), pages 171-194, July. [Downloadable!] (restricted)
  12. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June. [Downloadable!] (restricted)
  13. Sonnemans, Joep & Schram, Arthur & Offerman, Theo, 1998. "Public good provision and public bad prevention: The effect of framing," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 143-161, January. [Downloadable!] (restricted)
  14. Bagnoli, Mark & Lipman, Barton L, 1989. "Provision of Public Goods: Fully Implementing the Core through Private Contributions," Review of Economic Studies, Blackwell Publishing, vol. 56(4), pages 583-601, October. [Downloadable!] (restricted)
  15. Croson, Rachel & Marks, Melanie, 2001. "The Effect of Recommended Contributions in the Voluntary Provision of Public Goods," Economic Inquiry, Oxford University Press, vol. 39(2), pages 238-49, April.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Arthur J.H.C. Schram, 2002. "Experimental Public Choice," Tinbergen Institute Discussion Papers 02-106/1, Tinbergen Institute. [Downloadable!]
  2. Jennifer Zelmer, 2003. "Linear Public Goods Experiments: A Meta-Analysis," Experimental Economics, Springer, vol. 6(3), pages 299-310, November. [Downloadable!] (restricted)
  3. Asher, Sam & Casaburi, Lorenzo & Nikolov, Plamen & Ye, Maoliang, 2009. "One Step at a Time: Do Threshold Patterns Matter in Public Good Provision?," Economics Discussion Papers 2009-5, Kiel Institute for the World Economy. [Downloadable!]
    Other versions:
  4. John A. List & David Lucking-Reiley, 2000. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Working Papers 0008, Department of Economics, Vanderbilt University. [Downloadable!]
    Other versions:
  5. Matthias Sutter, 2004. "Tournaments for the endogenous allocating of prizes within workteams - Theory and experimental evidence," Papers on Strategic Interaction 2004-10, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  6. Giovanna Devetag & Andreas Ortmann, 2006. "When and Why? A Critical Survey on Coordination Failure in the Laboratory," CEEL Working Papers 0605, Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia. [Downloadable!]
    Other versions:
  7. Charles Cadsby & Rachel Croson & Melanie Marks & Elizabeth Maynes, 2008. "Step return versus net reward in the voluntary provision of a threshold public good: An adversarial collaboration," Public Choice, Springer, vol. 135(3), pages 277-289, June. [Downloadable!] (restricted)
  8. Calvin Blackwell, 2007. "A Meta-Analysis of Tax Compliance Experiments," International Studies Program Working Paper Series, at AYSPS, GSU paper0724, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  9. Jens Josephson & Karl Wärneryd, 2004. "Long-Run Selection and the Work Ethic," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  10. Esteve Mora, F. & Muñoz De Bustillo Llorente, R., 2004. "Mitos y falacias populares en el debate acerca de los sistemas de pensiones/Myths and Fallacies in the Debate About the Future of Pension Systems," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 22, pages 289-316, Agosto. [Downloadable!] (restricted)
  11. Vai-Lam Mui & Timothy N. Cason, 2004. "Uncertainty and Resistance to Reform in Laboratory Participation Games," Econometric Society 2004 Australasian Meetings 1, Econometric Society. [Downloadable!]
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  12. Friedel Bolle & Jessica Kaehler, 2006. "Coleman's Hypothesis on trusting behaviour and a remark on meta-studies," Journal of Economic Methodology, Taylor and Francis Journals, vol. 13(4), pages 469-483, December. [Downloadable!] (restricted)
  13. Jacob K. Goeree & Charles A. Holt, 2000. "An Explanation of Anomalous Behavior in Binary-Choice Games: Entry, Voting, Public Goods, and the Volunteers' Dilemma," Virginia Economics Online Papers 328, University of Virginia, Department of Economics. [Downloadable!]
  14. Raymond J.G.M. Florax & Henri L.F. de Groot & Ruud A. de Mooij, 2002. "Meta-analysis: A Tool for Upgrading Inputs of Macroeconomic Policy Models," Tinbergen Institute Discussion Papers 02-041/3, Tinbergen Institute. [Downloadable!]
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