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Coordination under threshold uncertainty in a public goods game

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  • Astrid Dannenberg
  • Andreas Löschel
  • Gabriele Paolacci
  • Christiane Reif
  • Alessandro Tavoni

Abstract

We explored experimentally how threshold uncertainty affects coordination success in a threshold public goods game. Whereas all groups succeeded in providing the public good when the exact value of the threshold was known, uncertainty was generally detrimental for the public good provision. The negative effect of threshold uncertainty was particularly severe when it took the form of ambiguity, i.e. when players were not only unaware of the value of the threshold but also of its probability distribution. Early signaling of willingness to contribute and share the burden equitably helped groups in coping with threshold uncertainty.

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Bibliographic Info

Paper provided by Grantham Research Institute on Climate Change and the Environment in its series Grantham Research Institute on Climate Change and the Environment Working Papers with number 64.

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Date of creation: Nov 2011
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Handle: RePEc:lsg:lsgwps:wp64

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  1. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  2. Alessandro Tavoni & Astrid Dannenberg & Giorgos Kallis & Andreas Löschel, 2011. "Inequality, communication and the avoidance of disastrous climate change," Grantham Research Institute on Climate Change and the Environment Working Papers 34, Grantham Research Institute on Climate Change and the Environment.
  3. Andreas Lange & Andreas Löschel & Carsten Vogt & Andreas Ziegler, 2009. "On the Self-interested Use of Equity in International Climate Negotiations," NBER Working Papers 14930, National Bureau of Economic Research, Inc.
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Cited by:
  1. Bernal-Escobar, Adriana & Cuervo-Sánchez, Rafael & Pinzon-Trujillo, Gonzalo & Maldonado, Jorge H., 2013. "Glacier Melting and Retreat: Understanding the Perception of Agricultural Households That Face the Challenges of Climate Change," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149005, Agricultural and Applied Economics Association.
  2. Adriana Bernal Escobar & Rafael Cuervo & Gonzalo Pinzón Trujillo & Jorge H. Maldonado., 2013. "Derretimiento y Retroceso Glaciar: Entendiendo la Percepción de los Hogares Agrícolas que se Enfrentan a los Desafíos del Cambio Climático," DOCUMENTOS CEDE 010679, UNIVERSIDAD DE LOS ANDES-CEDE.

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