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Leading by example in a public goods experiment with heterogeneity and incomplete information

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  • M. Vittoria Levati

    ()

  • Matthias Sutter
  • Eline van der Heijden

Abstract

We study the effects of leadership on the private provision of a public good when group members are heterogeneously endowed. Leadership is implemented as a sequential public goods game where one group member contributes first and all the others follow. Our results show that the presence of a leader increases average contribution levels, but less so than in case of homogeneous endowments. Leadership is almost ineffective, though, if subjects do not know the distribution of endowments. Granting the leaders exclusion power does not lead to significantly higher contributions.

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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 2005-17.

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Length: 33 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:esi:discus:2005-17

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Keywords: public goods experiment; leadership; exclusion; heterogeneous endowments; incomplete information;

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