Communication, Advice and Beliefs in an Experimental Public Goods Game

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Communication, Advice and Beliefs in an Experimental Public Goods Game

Author Info

Ananish Chaudhuri
Pushkar Maitra
Susan Skeath

Abstract

We study the efficacy of horizontal versus vertical social learning processes in a public goods game. In one treatment, subjects about to play the game can make nonbinding common knowledge announcements about their intentions while, in another, subjects do not communicate directly with group members but receive common knowledge advice from the previous generation of players. A third treatment has subjects play with neither communication nor advice. We find that groups that engage in peer communication achieve much lower levels of contribution to the public good than do groups that receive advice. We attribute this finding in part to the fact that some subjects in the communication treatment opted to make no announcement during the communication phase of play.

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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 05/06.

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Length: 48 pages
Date of creation: 01 Apr 2006
Date of revision:
Handle: RePEc:mos:moswps:2006-05

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Find related papers by JEL classification:
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-07-17 (All new papers)
NEP-EXP-2009-07-17 (Experimental Economics)
NEP-GTH-2009-07-17 (Game Theory)
NEP-HPE-2009-07-17 (History & Philosophy of Economics)
NEP-PBE-2009-07-17 (Public Economics)
NEP-SOC-2009-07-17 (Social Norms & Social Capital)

References listed on IDEAS
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Other versions:
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