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Heterogeneity and the Voluntary Provision of Public Goods

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Author Info
Kenneth S. Chan
Stuart Mestelman
Rob Moir
R. Andrew Muller

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Abstract

We 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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Paper provided by McMaster University in its series Department of Economics Working Papers with number 1998-04.

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Length: 31 pages
Date of creation: Apr 1998
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Handle: RePEc:mcm:deptwp:1998-04

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  1. Kenneth S. Chan & Stuart Mestelman & R. Andrew Muller, 1998. "Voluntary Provision of Public Goods," McMaster Experimental Economics Laboratory Publications 1998-02, McMaster University. [Downloadable!]
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  2. 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. [Downloadable!] (restricted)
  3. Hackett Steven & Schlager Edella & Walker James, 1994. "The Role of Communication in Resolving Commons Dilemmas: Experimental Evidence with Heterogeneous Appropriators," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 99-126, September. [Downloadable!] (restricted)
  4. 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. [Downloadable!]
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  5. Bagnoli, Mark & McKee, Michael, 1991. "Voluntary Contribution Games: Efficient Private Provision of Public Goods," Economic Inquiry, Oxford University Press, vol. 29(2), pages 351-66, April.
  6. Isaac, R Mark & Walker, James M, 1988. "Communication and Free-Riding Behavior: The Voluntary Contribution Mechanism," Economic Inquiry, Oxford University Press, vol. 26(4), pages 585-608, October.
  7. Kenneth S, et al Chan, 1996. "The Voluntary Provision of Public Goods under Varying Income Distributions," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 54-69, February. [Downloadable!] (restricted)
  8. Robert Moir, 1998. "A Monte Carlo Analysis of the Fisher Randomization Technique: Reviving Randomization for Experimental Economists," Experimental Economics, Springer, vol. 1(1), pages 87-100, June. [Downloadable!] (restricted)
  9. Kanbur, Ravi, 1992. "Heterogeneity, distribution, and cooperation in common property resource management," Policy Research Working Paper Series 844, The World Bank. [Downloadable!]
  10. Rapoport, Amnon & Suleiman, Ramzi, 1993. "Incremental Contribution in Step-Level Public Goods Games with Asymmetric Players," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(2), pages 171-194, July. [Downloadable!] (restricted)
  11. Andrew Muller & Michelle Vickers, 1996. "Communication in a Common Pool Resource Environment with Probabilistic Destruction," Department of Economics Working Papers 1996-02, McMaster University. [Downloadable!]
  12. Andreoni, James, 1993. "An Experimental Test of the Public-Goods Crowding-Out Hypothesis," American Economic Review, American Economic Association, vol. 83(5), pages 1317-27, December. [Downloadable!] (restricted)
  13. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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  14. Bardhan, Pranab, 1993. "Symposium on Management of Local Commons," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 87-92, Fall. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Louis Lévy-Garboua & Claude Montmarquette & Marie-Claire Villeval, 2007. "Individual Responsibility and the Funding of Collective Goods," IZA Discussion Papers 3041, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2003. "Inequality, Group Cohesion, and Public Good Provision: An Experimental Analysis," Working Papers 0308, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
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  3. John Spraggon, 2003. "Exogenous Targeting Instruments with Heterogeneous Agents," McMaster Experimental Economics Laboratory Publications 2003-02, McMaster University. [Downloadable!]
  4. Reuben, Ernesto & Riedl, Arno, 2009. "Enforcement of Contribution Norms in Public Good Games with Heterogeneous Populations," IZA Discussion Papers 4303, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Sadrieh, A. & Verbon, H.A.A., 2002. "Inequality, trust, and growth: : an experimental study," Discussion Paper 84, Tilburg University, Center for Economic Research. [Downloadable!]
  6. Stephan Schott & Neil Buckley & Stuart Mestelman & R. Andrew Muller, 2004. "Output Sharing Among Groups Exploiting Common Pool Resources," McMaster Experimental Economics Laboratory Publications 2004-05, McMaster University. [Downloadable!]
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  7. Lisa Anderson & Jennifer Mellor & Jeffrey Milyo, 2006. "Induced heterogeneity in trust experiments," Experimental Economics, Springer, vol. 9(3), pages 223-235, September. [Downloadable!] (restricted)
  8. Massimo Finocchiaro Castro, 2005. "Behaviour in a Two-Stage Two Public Goods Experiment," Experimental 0504002, EconWPA. [Downloadable!]
  9. Fangfang Tan, 2008. "Punishment in a Linear Public Good Game with Productivity Heterogeneity," De Economist, Springer, vol. 156(3), pages 269-293, September. [Downloadable!] (restricted)
  10. Gueth, W. & Sutter, M. & Verbon, H. & Weck-Hannemann, H., 2001. "Family versus public solidarity : theory and experiment," Discussion Paper 86, Tilburg University, Center for Economic Research. [Downloadable!]
  11. Juan Camilo Cardenas & John K. Stranlund & Cleve E. Willis, 2002. "Economic inequality and burden-sharing in the provision of local environmental quality," Artefactual Field Experiments 0026, The Field Experiments Website. [Downloadable!]
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  12. Massimo Finocchiaro Castro, 2005. "Behaviour in a Two-Stage Public Goods Experiment," Royal Holloway, University of London: Discussion Papers in Economics 05/05, Department of Economics, Royal Holloway University of London, revised May 2005. [Downloadable!]
  13. K. S. Chan & S. Mestelman & R. Moir & R. A. Muller, 2001. "Heterogeneity, Communication, Coordination and Voluntary Provision of a Public Good," Department of Economics Working Papers 2001-06, McMaster University. [Downloadable!]
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  14. Visser, Martine & Burns, Justine, 2006. "Bridging the Great Divide in South Africa: Inequality and Punishment in the Provision of Public Goods," Working Papers in Economics 219, Göteborg University, Department of Economics. [Downloadable!]
  15. Neil Buckley & Stuart Mestelman & R. Andrew Muller & Stephan Schott & Jingjing Zhang, 2009. "Shut Up and Fish: The Role of Communication when Output-Sharing is used to Manage a Common Pool Resource," Department of Economics Working Papers 2009-15, McMaster University. [Downloadable!]
  16. Hichri, Pavel & Hichri, Walid, 2008. "An auction mechanism for public goods provision: an experimental study," MPRA Paper 7884, University Library of Munich, Germany, revised 2008. [Downloadable!]
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