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Coordination under threshold uncertainty in a public goods game

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  • Astrid Dannenberg

    ()
    (Centre for European Economic Research (ZEW))

  • Andreas Löschel

    (Centre for European Economic Research (ZEW))

  • Gabriele Paolacci

    (Ca’ Foscari University of Venice)

  • Christiane Reif

    (Centre for European Economic Research (ZEW))

  • Alessandro Tavoni

    (London School of Economics and Political Science (LSE))

Abstract

We 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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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2011/WP_DSE_dannenberg_loeschel_paolacci_reif_tavoni_20_11.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2011_20.

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Length: 45
Date of creation: 2011
Date of revision: Nov 2011
Handle: RePEc:ven:wpaper:2011_20

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Keywords: public good; threshold uncertainty; ambiguity; experiment;

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Cited by:
  1. Bernal-Escobar, Adriana & Cuervo-Sánchez, Rafael & Pinzon-Trujillo, Gonzalo & Maldonado, Jorge H., 2013. "Glacier Melting and Retreat: Understanding the Perception of Agricultural Households That Face the Challenges of Climate Change," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 149005, Agricultural and Applied Economics Association.
  2. Adriana Bernal Escobar & Rafael Cuervo & Gonzalo Pinzón Trujillo & Jorge H. Maldonado., 2013. "Derretimiento y Retroceso Glaciar: Entendiendo la Percepción de los Hogares Agrícolas que se Enfrentan a los Desafíos del Cambio Climático," DOCUMENTOS CEDE, UNIVERSIDAD DE LOS ANDES-CEDE 010679, UNIVERSIDAD DE LOS ANDES-CEDE.

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