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Does heterogeneity spoil the basket? The role of productivity and feedback information on public good provision

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  • Angelovski, Andrej
  • Di Cagno, Daniela
  • Güth, Werner
  • Marazzi, Francesca
  • Panaccione, Luca

Abstract

In a circular neighborhood of eight, each member contributes repeatedly to two local public goods, one with the left and one with the right neighbor. All eight two-person games provide only local feedback information and are structurally independent in spite of their overlapping player sets. Heterogeneity is induced intra-personally by asymmetric productivity in left and right games and inter-personally by two randomly selected group members who are less privileged (LP) by being either less productive or excluded from end-of-period feedback information about their payoffs and neighbors’ contributions. Although both LP-types let the neighborhood as a whole evolve less cooperatively, their spillover dynamics differ. While less productive LPs initiate “spoiling the basket” via their low contributions, LPs with no-end-of-round information are exploited by their neighbors. Furthermore, LP-positioning, closest versus most distant, affects how the neighborhood evolves.

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  • Angelovski, Andrej & Di Cagno, Daniela & Güth, Werner & Marazzi, Francesca & Panaccione, Luca, 2018. "Does heterogeneity spoil the basket? The role of productivity and feedback information on public good provision," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 40-49.
  • Handle: RePEc:eee:soceco:v:77:y:2018:i:c:p:40-49
    DOI: 10.1016/j.socec.2018.09.006
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    More about this item

    Keywords

    Public goods; Behavioral spillovers; Voluntary contribution mechanism; Heterogeneity; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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