Full agreement and the provision of threshold public goods
AbstractWe report threshold public good experiments in which group members not only need to be individually willing to contribute enough to provide the public good but also have to agree with each other on what every group members should contribute. We find strong support to the hypothesis that full agreement increases successful provision, although it takes a few repetitions before group members can successfully coordinate. This is consistent with our theoretical results that full agreement works because it increases criticality of each individual decision. The existence of a focal point makes it possible for the group members to successfully coordinate.
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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 2011-063.
Date of creation: 2011
Date of revision:
Public good; threshold; full agreement; focal point; experiment; coordination;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-01-18 (All new papers)
- NEP-CBE-2012-01-18 (Cognitive & Behavioural Economics)
- NEP-EXP-2012-01-18 (Experimental Economics)
- NEP-GTH-2012-01-18 (Game Theory)
- NEP-PBE-2012-01-18 (Public Economics)
- NEP-PUB-2012-01-18 (Public Finance)
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