Coordination under threshold uncertainty in a public goods game
AbstractWe explored experimentally how threshold uncertainty affects coordination success in a threshold public goods game. Whereas all groups succeeded in providing the public good when the exact value of the threshold was known, uncertainty was generally detrimental for the public good provision. The negative effect of threshold uncertainty was particularly severe when it took the form of ambiguity, i.e. when players were not only unaware of the value of the threshold but also of its probability distribution. Early signaling of willingness to contribute and share the burden equitably helped groups in coping with threshold uncertainty.
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Bibliographic InfoPaper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2011_20.
Date of creation: 2011
Date of revision: Nov 2011
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public good; threshold uncertainty; ambiguity; experiment;
Other versions of this item:
- Dannenberg, Astrid & Löschel, Andreas & Paolacci, Gabriele & Reif, Christiane & Tavoni, Alessandro, 2011. "Coordination under threshold uncertainty in a public goods game," ZEW Discussion Papers 11-065, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
- NEP-EXP-2011-12-13 (Experimental Economics)
- NEP-GTH-2011-12-13 (Game Theory)
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