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The dos and don'ts of leadership in sequential public goods experiments

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  • Maria Fernanda Rivas

    ()

  • Matthias Sutter

    ()

Abstract

We study the effects of leadership in the provision of public goods by examining (i) the relative importance of reward and punishment as leadership devices, (ii) whether endogenous leadership is more efficient than exogenously enforced leadership, and (iii) whether leaders contributing last, instead of first, also increase contributions. The experimental results are: (i) Reward options yield lower contributions than punishment through exclusion. (ii) Endogenous leadership is much more efficient than exogenously imposed leadership. (iii) Sequentiality itself is not beneficial for contributions since groups where the leader contributes as the last member do not contribute more than groups without a leader.

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Bibliographic Info

Paper provided by Faculty of Economics and Statistics, University of Innsbruck in its series Working Papers with number 2008-25.

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Length: 30
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:inn:wpaper:2008-25

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Keywords: Public goods experiment; Leadership; Exclusion power; Reward; Endogeneity;

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Cited by:
  1. Daniele Nosenzo & Martin Sefton, 2010. "Endogenous Move Structure And Voluntary Provision Of Public Goods: Theory And Experiment," Discussion Papers 2010-14, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
  2. Simon Gächter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2012. "Who Makes A Good Leader? Cooperativeness, Optimism, And Leading-By-Example," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 953-967, October.
  3. Johannes Weisser, 2011. "Leading by example in intergroup competition: An experimental approach," Jena Economic Research Papers 2011-067, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Koukoumelis, Anastasios & Levati, M. Vittoria & Weisser, Johannes, 2012. "Leading by words: A voluntary contribution experiment with one-way communication," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 379-390.
  5. Ludwig, Sandra & Strassmair, Christina, 2009. "An Experimental study on the information structure in teams," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 277, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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