The Value of Non-Binding Announcements in Public Goods Experiments: Some Theory and Experimental Evidence

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The Value of Non-Binding Announcements in Public Goods Experiments: Some Theory and Experimental Evidence

Author Info

Michael Berlemann
Marcus Dittrich
Gunther Markwardt

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Abstract

In this paper we present three simple theoretical models to explain the influence of the possibility to make non-binding announcements on investment behaviour in public goods settings. Our models build on the idea that voluntary contributions to the supply of a public good might be motivated by some form of joy of giving. We show that the possibility to make non-binding announcements has a positive effect on cooperative behaviour, especially if individual announcements and factual investments are communicated to the players after each round. We also show that this result holds true even though the players have an incentive to overstate their true degrees of cooperativeness. Altogether, our theoretical considerations point in the direction that revealing as much information on individual intentions and factual behaviour as possible enhances cooperative behaviour. These conclusions are broadly confirmed by the results of a series of classroom experiments we present.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1352.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1352

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Article
- Berlemann, Michael & Dittrich, Marcus & Markwardt, Gunther, 2009. "The value of non-binding announcements in public goods experiments: Some theory and experimental evidence," The Journal of Socio-Economics, Elsevier, vol. 38(3), pages 421-428, June. [Downloadable!] (restricted)

Find related papers by JEL classification:
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-01-02 (All new papers)
NEP-EXP-2005-01-02 (Experimental Economics)
NEP-GTH-2005-01-02 (Game Theory)
NEP-PBE-2005-01-02 (Public Economics)

References listed on IDEAS
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Other versions:
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