Heterogeneity and the Voluntary Provision of Public Goods
AbstractWe investigate the effects of heterogeneity, incomplete information and communication on aggregate contributions to a public good using the voluntary contribution mechanism in a nonlinear laboratory environment. One-dimensional heterogeneity (heterogeneity in income or preferences) and two-dimensional heterogeneity (heterogeneity in income and preferences) both increase voluntary contributions. The effect is greatest when information is incomplete in the sense that subjects do not know each other’s payoffs. Incomplete information also reduces contributions in the homogeneous case. Communication reverses the relative importance of oneand two-dimensional heterogeneity in promoting cooperation.
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Bibliographic InfoPaper provided by McMaster University in its series Department of Economics Working Papers with number 1998-04.
Length: 31 pages
Date of creation: Apr 1998
Date of revision:
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Other versions of this item:
- Kenneth Chan & Stuart Mestelman & Robert Moir & R. Muller, 1999. "Heterogeneity and the Voluntary Provision of Public Goods," Experimental Economics, Springer, vol. 2(1), pages 5-30, August.
- NEP-ALL-2004-12-12 (All new papers)
- NEP-CBE-2004-12-12 (Cognitive & Behavioural Economics)
- NEP-PUB-2004-12-12 (Public Finance)
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- Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Andrew Muller, R., 2002.
"Crowding-out voluntary contributions to public goods,"
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- Kenneth S. Chan & Rob Godby & Stuart Mestelman & R. Andrew Muller, 1998. "Crowding Out Voluntary Contributions to Public Goods," Department of Economics Working Papers 1998-03, McMaster University.
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- Andrew Muller & Michelle Vickers, 1996. "Communication in a Common Pool Resource Environment with Probabilistic Destruction," Department of Economics Working Papers 1996-02, McMaster University.
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- Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 585-608, October.
- Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Muller, R. Andrew, 1997. "Equity theory and the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 349-364, March.
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