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Voluntary contributions with imperfect information: An experimental study

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  • M. Levati

    ()

  • Andrea Morone
  • Annamaria Fiore

Abstract

We use a two-person linear voluntary contribution mechanism with stochastic marginal benefits from the public good to examine the effect of imperfect information on contributions levels. To assess prior risk attitudes, individual valuations of several risky prospects are elicited via a second-price auction. We find that limited information about the productivity of the public good lowers significantly initial contributions in comparison to a setting with perfect information, whereas different information conditions do not result in qualitatively different contribution patterns. Moreover, our results show clear evidence of risk aversion, and of a negative relationship between the latter and willingness to cooperate.

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 138 (2009)
Issue (Month): 1 (January)
Pages: 199-216

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Handle: RePEc:kap:pubcho:v:138:y:2009:i:1:p:199-216

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Public goods experiments; Second-price auctions; Imperfect information; Risk; C72; C92; D80; H41;

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Cited by:
  1. Fischbacher, Urs & Schudy, Simeon & Teyssier, Sabrina, 2013. "Heterogeneous reactions to heterogeneity in returns from public goods," Munich Reprints in Economics 20336, University of Munich, Department of Economics.
  2. Lisa Anderson & Beth Freeborn & Jason Hulbert, 2012. "Risk Aversion and Tacit Collusion in a Bertrand Duopoly Experiment," Review of Industrial Organization, Springer, vol. 40(1), pages 37-50, February.
  3. Kristoffel Grechenig & Andreas Nicklisch & Christian Thöni, 2010. "Punishment despite Reasonable Doubt – A Public Goods Experiment with Uncertainty over Contributions," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2010_11, Max Planck Institute for Research on Collective Goods.
  4. François Cochard & Anne Rozan, 2010. "Taxe ambiante : un outil adapté à la lutte contre les coulées de boue ? Une étude expérimentale," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(3), pages 296-326.
  5. Florian Artinger & Nadine Fleischhut & M. Vittoria Levati & Jeffrey R. Stevens, 2012. "Cooperation in a Risky Environment: Decisions from Experience in a Stochastic Social Dilemma," Jena Economic Research Papers 2012-047, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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