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Voluntary contributions with imperfect information: An experimental study

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  • Annamaria Fiore
  • M. Vittoria Levati

    ()

  • Andrea Morone

Abstract

We use a two-person linear voluntary contribution mechanism with stochastic marginal benefits from the public good to examine the effect of imperfect information on contributions levels. To assess prior risk attitudes, individual valuations of several risky prospects are elicited via a second-price auction. We find that limited information about the productivity of the public good lowers significantly initial contributions in comparison to a setting with perfect information, whereas different information conditions do not result in qualitatively different contribution patterns. Moreover, our results show clear evidence of risk aversion, and of a negative relationship between the latter and willingness to cooperate.

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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 2006-30.

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Length: 35 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:esi:discus:2006-30

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Keywords: Public goods experiments; Vickrey auctions; Imperfect information; Risk attitudes;

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Citations

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Cited by:
  1. Kristoffel Grechenig & Andreas Nicklisch & Christian Thöni, 2010. "Punishment despite Reasonable Doubt – A Public Goods Experiment with Uncertainty over Contributions," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2010_11, Max Planck Institute for Research on Collective Goods.
  2. Urs Fischbacher & Simeon Schudy & Sabrina Teyssier, 2014. "Heterogeneous reactions to heterogeneity in returns from public goods," Social Choice and Welfare, Springer, vol. 43(1), pages 195-217, June.
  3. Lisa R. Anderson & Beth A. Freeborn & Jason P. Hulbert, 2009. "Risk Aversion and Tacit Collusion in a Bertrand Duopoly Experiment," Working Papers 84, Department of Economics, College of William and Mary.
  4. François Cochard & Anne Rozan, 2010. "Taxe ambiante : un outil adapté à la lutte contre les coulées de boue ? Une étude expérimentale," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(3), pages 296-326.
  5. Fischbacher, Urs & Schudy, Simeon & Teyssier, Sabrina, 2013. "Heterogeneous reactions to heterogeneity in returns from public goods," Munich Reprints in Economics 20336, University of Munich, Department of Economics.
  6. Florian Artinger & Nadine Fleischhut & M. Vittoria Levati & Jeffrey R. Stevens, 2012. "Cooperation in a Risky Environment: Decisions from Experience in a Stochastic Social Dilemma," Jena Economic Research Papers 2012-047, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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