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Sequential versus simultaneous contributions to public goods: Experimental evidence

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  • Simon Gaechter

    (University of Nottingham)

  • Daniele Nosenzo

    (University of Nottingham)

  • Elke Renner

    (University of Nottingham)

  • Martin Sefton

    ()
    (University of Nottingham)

Abstract

We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting (Varian, Journal of Public Economics, 1994). Our findings support the theoretical argument that sequential contributions result in lower overall provision than simultaneous contributions. However, the distribution of contributions is not as predicted: late contributors are sometimes willing to punish early low contributors by contributing less than their best response. This induces early contributors to contribute more than they otherwise would. A consequence of this is that we fail to observe a predicted first mover advantage.

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Bibliographic Info

Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2009-07.

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Date of creation: Mar 2009
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Handle: RePEc:cdx:dpaper:2009-07

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Keywords: Public Goods; Voluntary Contributions; Sequential Moves; Experiment;

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References

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Citations

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Cited by:
  1. Ludwig, Sandra & Strassmair, Christina, 2009. "An Experimental study on the information structure in teams," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 277, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  2. Raphaële Préget & Phu Nguyen-Van & Marc Willinger, 2012. "Who are the Voluntary Leaders? Experimental Evidence from a Sequential Contribution Game," Working Papers 12-34, LAMETA, Universtiy of Montpellier, revised Nov 2012.
  3. Daniele Nosenzo & Martin Sefton, 2010. "Endogenous Move Structure and Volunatary Provision of Public Goods: Theory and Experiment," Discussion Papers 2010-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  4. Russo, Giuseppe & Senatore, Luigi, 2012. "A note on contribution games with loss functions," Economics Letters, Elsevier, vol. 115(2), pages 211-214.
  5. Michael Neugart & Matteo Richiardi, 2011. "Sequential Teamwork in Competitive Environments: Theory and Evidence from Swimming Data," LABORatorio R. Revelli Working Papers Series 109, LABORatorio R. Revelli, Centre for Employment Studies.

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