A Laboratory Test of Canadian Proposals for an Emission Trading Program
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 one and two-dimensional heterogeneity in promoting cooperation.
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Bibliographic InfoPaper provided by McMaster University in its series McMaster Experimental Economics Laboratory Publications with number 1998-03.
Length: 31 pages
Date of creation: Mar 1998
Date of revision:
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