The Implications of Risk and Uncertainty Aversion in Public Goods Games
AbstractIn this paper we examine how individuals behave in situations of risk and uncertainty in public and private goods context. We find that subjects are willing to pay a much higher amount to find out information relating to the probabilities of providing the private good than information relating to the public good even if this information has greater consequences for the individual in he public goods context. We find strong support for the free-rider hypothesis and extend it to cases when risk and uncertainty are present. We find that subjects treat risks and uncertainties associated with the provision of private good and public good differently.
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Bibliographic InfoPaper provided by Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University in its series Environmental Economics Research Hub Research Reports with number 10107.
Date of creation: Jun 2011
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
- NEP-CBE-2011-10-15 (Cognitive & Behavioural Economics)
- NEP-EXP-2011-10-15 (Experimental Economics)
- NEP-MIC-2011-10-15 (Microeconomics)
- NEP-PUB-2011-10-15 (Public Finance)
- NEP-UPT-2011-10-15 (Utility Models & Prospect Theory)
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