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Ex Interim Voting in Public Good Provision

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  • Sven Fischer

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  • Andreas Nicklisch
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    Abstract

    We report the results of an experimental study that compares voting mechanisms in the provision of public goods. Subjects can freely decide how much they want to contribute. Whether the public good is finally provided is decided by a referendum under full information about all contributions. If provision is rejected, contributions are reduced by a fee and reimbursed. We compare unanimity with majority voting and both to the baseline of cheap talk. Contributions are highest under unanimity. Yet, results concerning overall efficiency are mixed. When provision occurs, only unanimity enhances efficiency. Overall, however, unanimity leads to too many rejections.

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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 2006-13.

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    Length: 20 pages
    Date of creation: Oct 2006
    Date of revision:
    Handle: RePEc:esi:discus:2006-13

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    Keywords: competition; collusion; auction; bidding; public procurement;

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