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Matching Contributions and the Voluntary Provision of a Pure Public Good: Experimental Evidence

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Author Info
Ronald J. Baker II () (Millersville University of Pennsylvania)
James M. Walker () (Indiana University Bloomington)
Arlington W. Williams () (Indiana University Bloomington)

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Abstract

Laboratory experiments are used to study the voluntary provision of a pure public good in the presence of an anonymous external donor. The external funds are used in two different settings, lump-sum matching and one-to-one matching, to examine how allocations to the public good are affected. The experimental results reveal that allocations to the public good under lumpsum matching are significantly higher, and have significantly lower within-group dispersion, relative to one-to-one matching and a baseline setting without external matching funds.

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Publisher Info
Paper provided by Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington in its series Caepr Working Papers with number 2006-007.

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Length: 35 pages
Date of creation: Aug 2006
Date of revision: Dec 2007
Handle: RePEc:inu:caeprp:2006007

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Related research
Keywords: public goods; free riding; laboratory experiments;

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Find related papers by JEL classification:
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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  1. Marks, Melanie & Croson, Rachel, 1998. "Alternative rebate rules in the provision of a threshold public good: An experimental investigation," Journal of Public Economics, Elsevier, vol. 67(2), pages 195-220, February. [Downloadable!] (restricted)
  2. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March. [Downloadable!] (restricted)
  3. John A. List & David Lucking-Reiley, 2002. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 215-233, February. [Downloadable!] (restricted)
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  4. Dean Karlan & John A. List, 2006. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," Working Papers 001, The Field Experiments Website. [Downloadable!]
    Other versions:
  5. List, John A. & Rondeau, Daniel, 2003. "The impact of challenge gifts on charitable giving: an experimental investigation," Economics Letters, Elsevier, vol. 79(2), pages 153-159, May. [Downloadable!] (restricted)
  6. Isaac, R. Mark & Walker, James M. & Williams, Arlington W., 1994. "Group size and the voluntary provision of public goods : Experimental evidence utilizing large groups," Journal of Public Economics, Elsevier, vol. 54(1), pages 1-36, May. [Downloadable!] (restricted)
  7. Potters, J. & Sefton, M. & Vesterlund, L., 2001. "Why announce leadership contributions? : An experimental study of the signaling and reciprocity hypotheses," Discussion Paper 100, Tilburg University, Center for Economic Research. [Downloadable!]
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