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Public Goods, Social Norms and Naive Beliefs

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  • Edward Cartwright

    ()

  • Amrish Patel

    ()

Abstract

An individual’s contribution to a public good may be seen by others as a signal of attributes such as generosity or wealth. An individual may, therefore, choose their contribution so as to send an appropriate signal to others. In this paper we question how the inferences made by others will influence the amount contributed to the public good. Evidence suggests that individuals are naive and biased towards taking things at "face value". We contrast, therefore, contributions made to a public good if others are expected to make rational inferences versus contributions if others are expected to make naive inferences.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0807.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0807.

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Date of creation: May 2008
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Handle: RePEc:ukc:ukcedp:0807

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/

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Keywords: signalling; naive beliefs; public goods;

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Citations

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Cited by:
  1. Patel, Amrish & Cartwright, Edward, 2011. "Naïve Beliefs and the Multiplicity of Social Norms," Working Papers in Economics 488, University of Gothenburg, Department of Economics.
  2. Edward Cartwright & Amrish Patel, 2009. "Does category reporting increase donations to charity? A signalling game approach," Studies in Economics 0924, Department of Economics, University of Kent.
  3. Cartwright, Edward & Patel, Amrish, 2012. "How Category Reporting Can Improve Fundraising," Working Papers in Economics 522, University of Gothenburg, Department of Economics.

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