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Leading by example with and without exclusion power in voluntary contribution experiments

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  • Werner Güth

    ()

  • M. Vittoria Levati

    ()

  • Matthias Sutter
  • Eline van der Heijden

Abstract

We examine the effects of leading by example in voluntary contribution experiments. Leadership is implemented by letting one group member contribute to the public good before followers do. Such leadership increases contributions in comparison to the standard voluntary contribution mechanism, especially so when it goes along with authority in the form of granting the leader exclusion power. Whether leadership is fixed or rotating among group members has no significant influence on contributions. Only a minority of groups succeeds in endogenously installing a leader, even though groups with leaders are much more efficient than groups without a leader.

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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 2006-35.

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Length: 32 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:esi:discus:2006-35

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Keywords: Voluntary contribution experiment; leadership; exclusion power; endogenous selection;

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