Context effects in a negative externality experiment
AbstractThis study investigates the degree to which framing and context influence observed rates of free-riding behavior in a negative externality laboratory experiment. Building on the work of Andreoni (1995a) and Messer et al. (2007) we frame the decision not to contribute to a public fund as generating a negative externality on other group members. The experimental treatments involving 252 subjects vary communication, voting, and the status quo of the initial endowment. Results indicate that allowing groups the opportunity to communicate and vote significantly reduces rates of free-riding, and this effect is especially pronounced when initial endowments are placed in the private as opposed to the public fund.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 10-09.
Length: 40 pages
Date of creation: 2010
Date of revision:
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Negative externality; voluntary contribution mechanism; cheap talk; voting; status quo bias; experimental economics;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- H4 - Public Economics - - Publicly Provided Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
- NEP-CBE-2010-09-11 (Cognitive & Behavioural Economics)
- NEP-EXP-2010-09-11 (Experimental Economics)
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