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Privately Contributing to Public Goods over Time - An Experimental Study -

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  • Werner Güth

    ()

  • Maria Vittoria Levati

    ()

  • Andreas Stiehler

    ()

Abstract

Similar to Levati and Neugebauer (2001), a clock is used by which participants can vary their individual contributions for voluntarily providing a public good. As time goes by, participants either in(de)crease their contribution gradually or keep it constant. Groups of two poorly and two richly endowed participants encounter repeatedly the weakest link-, the usual average contribution- and the best shot-technology of public good provision in a within subject-design. Some striking findings are that the weakest link-technology fares much better than the other two technologies in terms of welfare, and that the willingness of people to voluntarily contribute is greatly a®ected by the (increasing or decreasing) clock mechanism.

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Bibliographic Info

Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-01.

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Length: 37 pages
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Handle: RePEc:esi:discus:2002-01

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Keywords: Public goods; Voluntary contributions; Efficient provision; Clock mechanism;

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References

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  1. Keser, Claudia & van Winden, Frans, 2000. " Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
  2. Sonnemans, Joep & Schram, Arthur & Offerman, Theo, 1999. "Strategic behavior in public good games: when partners drift apart," Economics Letters, Elsevier, vol. 62(1), pages 35-41, January.
  3. Croson, Rachel T. A., 1996. "Partners and strangers revisited," Economics Letters, Elsevier, vol. 53(1), pages 25-32, October.
  4. Roberto Burlando & John Hey, . "Do Anglo-Saxons Free-Ride More?," Discussion Papers 95/37, Department of Economics, University of York.
  5. Rachel T. A. Croson, 2007. "Theories Of Commitment, Altruism And Reciprocity: Evidence From Linear Public Goods Games," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 199-216, 04.
  6. Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
  7. Andreoni, James, 1988. "Why free ride? : Strategies and learning in public goods experiments," Journal of Public Economics, Elsevier, vol. 37(3), pages 291-304, December.
  8. M. Vittoria Levati & Tibor Neugebauer, 2004. "An Application of the English Clock Market Mechanism to Public Goods Games," Experimental Economics, Springer, vol. 7(2), pages 153-169, 06.
  9. Weimann, Joachim, 1994. "Individual behaviour in a free riding experiment," Journal of Public Economics, Elsevier, vol. 54(2), pages 185-200, June.
  10. Dorsey, Robert E, 1992. " The Voluntary Contributions Mechanism with Real Time Revisions," Public Choice, Springer, vol. 73(3), pages 261-82, April.
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Citations

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Cited by:
  1. Goren, Harel & Kurzban, Robert & Rapoport, Amnon, 2003. "Social loafing vs. social enhancement: Public goods provisioning in real-time with irrevocable commitments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 90(2), pages 277-290, March.
  2. Jack Ochs & John Duffy & Lise Vesterlund, 2006. "Giving Little by Little," Working Papers 232, University of Pittsburgh, Department of Economics, revised Jan 2006.
  3. M. Vittoria Levati & Ro’i Zultan, 2011. "Cycles of Conditional Cooperation in a Real-Time Voluntary Contribution Mechanism," Games, MDPI, Open Access Journal, vol. 2(1), pages 1-15, January.
  4. Max Albert & Werner Güth & Erich Kirchler & Boris Maciejovsky, 2002. "Are we nice(r) to nice(r) people? - An Experimental Analysis," Papers on Strategic Interaction 2002-15, Max Planck Institute of Economics, Strategic Interaction Group.
  5. Lise Vesterlund & John Duffy & Jack Ochs, 2004. "Giving Little by Little: Dynamic Voluntary Contribution Games," Econometric Society 2004 North American Winter Meetings 402, Econometric Society.
  6. Pavel Diev & Walid Hichri, 2008. "Dynamic voluntary contributions to a discrete public good: Experimental evidence," Economics Bulletin, AccessEcon, vol. 3(23), pages 1-11.
  7. Siegfried Berninghaus & Karl-Martin Ehrhart & Marion Ott & Bodo Vogt, 2007. "Evolution of networks—an experimental analysis," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 317-347, June.

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