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Does Uncertainty Deter Provision of Public Goods?

Author

Listed:
  • Béatrice Boulu-Reshef
  • Samuel H. Brott
  • Adam Zylbersztejn

Abstract

We study a finitely repeated public goods game (based on the voluntary contribution mechanism) played under complete uncertainty about the marginal benefit of the public good relative to the private consumption (commonly known as the marginal per capita return): neither one?s marginal per capita return nor other players? marginal per capita returns are known at the time of decision-making. We show that contributions are equivalent when the rate of return is predetermined and when it is uncertain, and display a similar decay over time. Combined with the previous experimental findings, our results suggest that cooperation in public goods games is sensitive to the source of uncertainty about marginal per capita return. JEL Codes: H41, D81, C91, C92.

Suggested Citation

  • Béatrice Boulu-Reshef & Samuel H. Brott & Adam Zylbersztejn, 2017. "Does Uncertainty Deter Provision of Public Goods?," Revue économique, Presses de Sciences-Po, vol. 68(5), pages 785-791.
  • Handle: RePEc:cai:recosp:reco_pr3_0087
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    Citations

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    Cited by:

    1. Billur Aksoy & Silvana Krasteva, 2020. "When does less information translate into more giving to public goods?," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1148-1177, December.
    2. Caleb A. Cox & Brock Stoddard, 2021. "Common-Value Public Goods and Informational Social Dilemmas," American Economic Journal: Microeconomics, American Economic Association, vol. 13(2), pages 343-369, May.
    3. Luigi Butera & John List, 2017. "An Economic Approach to Alleviate the Crisis of Confidence in Science: With an Application to the Public Goods Game," Artefactual Field Experiments 00608, The Field Experiments Website.
    4. Véronique Flambard & Fabrice Le Lec & Rustam Romaniuc, 2024. "An experimental comparison of contributions in collective prevention games and public goods games," Economic Inquiry, Western Economic Association International, vol. 62(4), pages 1598-1617, October.
    5. Vincent Théroude & Adam Zylbersztejn, 2017. "Cooperation in a risky world," Working Papers halshs-01443917, HAL.
    6. Banerjee, Anwesha, 2024. "The effect of heterogeneity and risk on co-operation: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    7. Dorner, Zack & Tucker, Steven & Hassan, Gazi M, 2024. "Heterogeneous productivity stabilizes public good contributions under certainty, uncertainty and ambiguity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).
    8. Annarita Colasante & Aurora García-Gallego & Nikolaos Georgantzis & Andrea Morone, 2020. "Voluntary contributions in a system with uncertain returns: a case of systemic risk," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 15(1), pages 111-132, January.
    9. Vincent Théroude & Adam Zylbersztejn, 2017. "Cooperation in a risky world," Working Papers 1704, Groupe d'Analyse et de Théorie Economique Lyon St-Etienne (GATE Lyon St-Etienne), Université de Lyon.

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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