Competition for status acquisition in public good games
AbstractThis paper examines the role of status acquisition as a motive for giving in voluntary contributions to public goods. In particular, every donor's status is given by the difference between his contribution and that of the other donor. Specifically, I show that contributors give more than in standard models where status is not considered, their donation is increasing in the value they assign to status and, under certain conditions, in the value that their opponents assign to status (reflecting donors' competition to gain social status). Furthermore, I consider contributors' equilibrium strategies both in simultaneous and sequential contribution mechanisms. Then, I compare total contributions in both of these mechanisms. I find that the simultaneous contribution order generates higher total contributions than the sequential mechanism only when donors are sufficiently homogeneous in the value they assign to status. Otherwise, the sequential mechanism generates the highest contributions. Copyright 2011 Oxford University Press 2011 All rights reserved, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 63 (2011)
Issue (Month): 3 (July)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://oep.oupjournals.org/
Other versions of this item:
- Felix Munoz-Garcia, 2008. "Competition for status acquisition in public good games," Working Papers, School of Economic Sciences, Washington State University 2008-12, School of Economic Sciences, Washington State University.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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.:
- Ed Hopkins & Tatiana Kornienko, 2004.
"Running to Keep in the Same Place: Consumer Choice as a Game of Status,"
American Economic Review, American Economic Association,
American Economic Association, vol. 94(4), pages 1085-1107, September.
- Ed Hopkins & Tatiana Kornienko, 2004. "Running to Keep in the Same Place: Consumer Choice as a Game of Status," ESE Discussion Papers, Edinburgh School of Economics, University of Edinburgh 92, Edinburgh School of Economics, University of Edinburgh.
- Potters, Jan & Sefton, Martin & Vesterlund, Lise, 2005.
"After you--endogenous sequencing in voluntary contribution games,"
Journal of Public Economics, Elsevier,
Elsevier, vol. 89(8), pages 1399-1419, August.
- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2005. "After you - endogenous sequencing in voluntary contribution games," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-171671, Tilburg University.
- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2003. "After You - Endogenous Sequencing in Voluntary Contribution Games," Discussion Paper, Tilburg University, Center for Economic Research 2003-98, Tilburg University, Center for Economic Research.
- Congleton, Roger D., 1989. "Efficient status seeking: Externalities, and the evolution of status games," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 11(2), pages 175-190, March.
- Morgan, John, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 67(4), pages 761-84, October.
- Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, Elsevier, vol. 53(2), pages 165-186, February.
- Lise Vesterlund & Cagri Kumru, 2005. "The Effects of Status on Voluntary Contribution," Working Papers, University of Pittsburgh, Department of Economics 266, University of Pittsburgh, Department of Economics, revised Jan 2005.
- John Duffy & Tatiana Kornienko, 2005. "Does Competition Affect Giving? An Experimental Study," Experimental, EconWPA 0508002, EconWPA.
- Ball, Sheryl & Eckel, Catherine C., 1998.
"The economic value of status,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier,
Elsevier, vol. 27(4), pages 495-514.
- Ball, Sheryl & Eckel, Catherine C., 1998. "The Economic Value of Status," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 24(4), pages 495-514.
- Romano, Richard & Yildirim, Huseyin, 2001. "Why charities announce donations: a positive perspective," Journal of Public Economics, Elsevier, Elsevier, vol. 81(3), pages 423-447, September.
- Sheryl Ball & Catherine Eckel & Philip J. Grossman & William Zame, 2001. "Status In Markets," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(1), pages 161-188, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.