Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency
AbstractWe find that a process of voluntary association where individuals express a preference about whom they want to be associated with can create strong incentives to increase efficiency and contributions in provision of a public good. This process of endogenous group formation perfectly sorted contributions by the order of group formation. Comparison of middle and last period behaviour suggests that a majority of the subject population are conditional cooperators, with a minority of monetary payoff maximisers. The experiment illustrates that under favourable conditions, where the opportunities of entry and exit are symmetrically balanced, a process of voluntary association can mitigate the free-rider problem. Copyright 2005 Royal Economic Society.
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Bibliographic InfoPaper provided by Brown University, Department of Economics in its series Working Papers with number 2002-19.
Date of creation: 2002
Date of revision:
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Postal: Department of Economics, Brown University, Providence, RI 02912
Other versions of this item:
- Talbot Page & Louis Putterman & Bulent Unel, 2005. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Economic Journal, Royal Economic Society, vol. 115(506), pages 1032-1053, October.
- NEP-ALL-2003-04-21 (All new papers)
- NEP-CDM-2003-04-21 (Collective Decision-Making)
- NEP-EXP-2003-04-21 (Experimental Economics)
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