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Sequential versus simultaneous contributions to public goods: Experimental evidence

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Author Info

  • 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. In one parameterization we find that overall provision is lower under sequential than simultaneous contributions, as predicted, but the distribution of contributions is not as extreme as predicted and first movers do not attain their predicted firstmover advantage. In another parameterization we again find that the distribution of contributions is not as predicted when the first mover is predicted to free ride, but we find strong support for equilibrium predictions when the second mover is predicted to free ride. These results can be explained by second movers' willingness to punish first movers who free ride, and unwillingness to reward first movers who contribute.

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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 2009-17.

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Date of creation: Sep 2009
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Handle: RePEc:cdx:dpaper:2009-17

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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. Neugart, Michael & Richiardi, Matteo G., 2013. "Sequential teamwork in competitive environments: Theory and evidence from swimming data," European Economic Review, Elsevier, vol. 63(C), pages 186-205.
  2. Daniele Nosenzo & Martin Sefton, 2009. "Endogenous Move Structure And Voluntary Provision Of Public Goods: Theory And Experiment," Discussion Papers 2009-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  3. Russo, Giuseppe & Senatore, Luigi, 2011. "A Note on Contribution Games with Loss Functions," MPRA Paper 33423, University Library of Munich, Germany.
  4. Raphaële Préget & Phu Nguyen-Van & Marc Willinger, 2012. "Who are the Voluntary Leaders? Experimental Evidence from a Sequential Contribution Game," Working Papers of BETA 2012-21, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  5. 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.

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