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"One man's meat is another man's poison." An experimental study of voluntarily providing public projects that raise mixed feelings

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Author Info

  • Werner Güth

    ()
    (Max Planck Institute of Economics, Strategic Interaction Group)

  • Anastasios Koukoumelis

    (Max Planck Institute of Economics, Strategic Interaction Group)

  • M. Vittoria Levati

    ()
    (Max Planck Institute of Economics, Strategic Interaction Group)

Abstract

We compare, on the basis of a procedurally fair "provision point" mechanism, bids for a public project from which some gain and some lose with bids for a less efficient public project from which all gain. In the main treatment, participants independently decide which one, if any, of the public projects should be implemented. We also run control treatments where only one of the two projects can be implemented. We find that (a) mixed feelings per se do not affect bidding behavior, and (b) the provision frequency of the project that raises mixed feelings declines significantly when it faces competition from the public good.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-034.

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Date of creation: 01 Aug 2011
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Handle: RePEc:jrp:jrpwrp:2011-034

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Keywords: Public project; Bidding behavior; Procedural fairness;

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References

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  1. Charles Cadsby & Rachel Croson & Melanie Marks & Elizabeth Maynes, 2008. "Step return versus net reward in the voluntary provision of a threshold public good: An adversarial collaboration," Public Choice, Springer, vol. 135(3), pages 277-289, June.
  2. Roberto Burlando & John Hey, . "Do Anglo-Saxons Free-Ride More?," Discussion Papers 95/37, Department of Economics, University of York.
  3. Moxnes, E. & Heijden, E.C.M. van der, 2000. "The Effect of Leadership in a Public Bad Experiment," Discussion Paper 2000-102, Tilburg University, Center for Economic Research.
  4. Rondeau, Daniel & D. Schulze, William & Poe, Gregory L., 1999. "Voluntary revelation of the demand for public goods using a provision point mechanism," Journal of Public Economics, Elsevier, vol. 72(3), pages 455-470, June.
  5. Cadsby, Charles Bram & Maynes, Elizabeth, 1999. "Voluntary provision of threshold public goods with continuous contributions: experimental evidence," Journal of Public Economics, Elsevier, vol. 71(1), pages 53-73, January.
  6. Spencer, Michael A. & Swallow, Stephen K. & Shogren, Jason F. & List, John A., 2009. "Rebate rules in threshold public good provision," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 798-806, June.
  7. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
  8. Werner Güth & Hartmut Kliemt, 2011. "Procedurally Fair Provision of Public Projects An axiomatic characterization," Jena Economic Research Papers 2011-016, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
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Citations

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Cited by:
  1. Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati & Matteo Ploner, 2013. "Providing negative cost public projects under a fair mechanism: An experimental analysis," Jena Economic Research Papers 2013-021, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Simona Cicognani & Aanna D'Ambrosio & Werner Güth & Simone Pfuderer & Matteo Ploner, 2012. "Community Projects: An Experimental Analysis of a Fair Implementation Process," Jena Economic Research Papers 2012-015, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati & Matteo Ploner, 2012. "Public projects benefiting some and harming others: three experimental studies," Jena Economic Research Papers 2012-034, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Werner Güth & Hartmut Kliemt & Anastasios Koukoumelis & M. Vittoria Levati & Matteo Ploner, 2013. "Procedurally Fair Collective Provision: Its Requirements and Experimental Functionality," CESifo Working Paper Series 4541, CESifo Group Munich.

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