"One man's meat is another man's poison." An experimental study of voluntarily providing public projects that raise mixed feelings
AbstractWe 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 InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-034.
Date of creation: 01 Aug 2011
Date of revision:
Public project; Bidding behavior; Procedural fairness;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-29 (All new papers)
- NEP-CBE-2011-08-29 (Cognitive & Behavioural Economics)
- NEP-EXP-2011-08-29 (Experimental Economics)
- NEP-GTH-2011-08-29 (Game Theory)
- NEP-PPM-2011-08-29 (Project, Program & Portfolio Management)
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