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On Modeling Voluntary Contributions to Public Goods

Author

Listed:
  • James C. Cox
  • Vjollca Sadiraj

    (Georgia State University, Atlanta)

Abstract

This article addresses four “stylized facts†that summarize data from experimental studies of voluntary contributions to the provision of public goods. Theoretical propositions and testable hypotheses for voluntary contributions are derived from two models of social preferences, the inequity aversion model and the egocentric other-regarding preferences model. The authors find that the egocentric other-regarding preferences model with classical regularity properties can better account for the stylized facts than the inequity aversion model with nonclassical properties.

Suggested Citation

  • James C. Cox & Vjollca Sadiraj, 2007. "On Modeling Voluntary Contributions to Public Goods," Public Finance Review, , vol. 35(2), pages 311-332, March.
  • Handle: RePEc:sae:pubfin:v:35:y:2007:i:2:p:311-332
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    Cited by:

    1. Morita, Hodaka & Servátka, Maroš, 2013. "Group identity and relation-specific investment: An experimental investigation," European Economic Review, Elsevier, vol. 58(C), pages 95-109.
    2. Sascha Hokamp & Michael Pickhardt, "undated". "Pareto-optimality in Linear Public Goods Games," Working Papers 201171, Institute of Spatial and Housing Economics, Munster Universitary.
    3. James Cox & Maroš Servátka & Radovan Vadovič, 2010. "Saliency of outside options in the lost wallet game," Experimental Economics, Springer;Economic Science Association, vol. 13(1), pages 66-74, March.
    4. Jasmina Arifovic & John Ledyard, 2012. "Individual Evolutionary Learning, Other-regarding Preferences, and the Voluntary Contributions Mechanism," Discussion Papers wp12-01, Department of Economics, Simon Fraser University.
    5. Björk, Lisa & Kocher, Martin & Martinsson, Peter & Nam Khanh, Pham, 2016. "Cooperation under risk and ambiguity," Working Papers in Economics 683, University of Gothenburg, Department of Economics.
    6. Blanco, Esther & Haller, Tobias & Lopez, Maria Claudia & Walker, James M., 2016. "The tension between private benefits and degradation externalities from appropriation in the commons," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 136-147.
    7. Frans van Winden & Mirre Stallen & K. Richard Ridderinkhof, 2008. "On the Nature, Modeling, and Neural Bases of Social Ties," Tinbergen Institute Discussion Papers 08-063/1, Tinbergen Institute.
    8. Christian Thoeni & Simon Gaechter, 2011. "Peer Effects and Social Preferences in Voluntary Cooperation," Discussion Papers 2011-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. James C. Cox, 2012. "Private Goods, Public Goods, and Common Pools with Homo Reciprocans," Southern Economic Journal, Southern Economic Association, vol. 79(1), pages 1-14, July.
    10. James C. Cox & Maroš Servátka & Radovan Vadovic, 2012. "Status Quo Effects in Fairness Games: Reciprocal Responses to Acts of Commission vs. Acts of Omission," Experimental Economics Center Working Paper Series 2012-03, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised Jan 2016.
    11. Ambrus, Attila & Pathak, Parag A., 2011. "Cooperation over finite horizons: A theory and experiments," Journal of Public Economics, Elsevier, vol. 95(7), pages 500-512.
    12. Maroš Servátka & Steven Tucker & Radovan Vadovič, 2011. "Building Trust—One Gift at a Time," Games, MDPI, Open Access Journal, vol. 2(4), pages 1-22, September.
    13. Alexia Gaudeul, 2013. "Social preferences under uncertainty," Jena Economic Research Papers 2013-024, Friedrich-Schiller-University Jena.
    14. James C. Cox & Daniel T. Hall, 2010. "Trust with Private and Common Property: Effects of Stronger Property Right Entitlements," Games, MDPI, Open Access Journal, vol. 1(4), pages 1-24, November.
    15. Barbier, Edward B., 2008. "In the wake of tsunami: Lessons learned from the household decision to replant mangroves in Thailand," Resource and Energy Economics, Elsevier, vol. 30(2), pages 229-249, May.
    16. James C Cox & Danyang Li, 2012. "Do I care if you know I betrayed you?," Economics Bulletin, AccessEcon, vol. 32(4), pages 2839-2848.
    17. James C. Cox & Maroš Servátka & Radovan Vadovič, 2017. "Status quo effects in fairness games: reciprocal responses to acts of commission versus acts of omission," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 1-18, March.
    18. repec:kap:expeco:v:21:y:2018:i:1:d:10.1007_s10683-017-9522-7 is not listed on IDEAS
    19. Yola Engler & Rudolf Kerschbamer & Lionel Page, 2018. "Why did he do that? Using counterfactuals to study the effect of intentions in extensive form games," Experimental Economics, Springer;Economic Science Association, vol. 21(1), pages 1-26, March.
    20. James C. Cox & Vjollca Sadiraj & Urmimala Sen, 2017. "Cultural Identities and Resolution of Social Dilemmas," Experimental Economics Center Working Paper Series 2017-08, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
    21. Danková, Katarína & Servátka, Maroš, 2015. "The house money effect and negative reciprocity," Journal of Economic Psychology, Elsevier, vol. 48(C), pages 60-71.
    22. Arifovic, Jasmina & Ledyard, John, 2012. "Individual evolutionary learning, other-regarding preferences, and the voluntary contributions mechanism," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 808-823.
    23. James C. Cox & Elinor Ostrom & James M. Walker, 2011. "Bosses and Kings: Asymmetric Power in Paired Common Pool and Public Good Games," Experimental Economics Center Working Paper Series 2011-06, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised Aug 2012.
    24. James C. Cox & Maroš Servátka & Radovan Vadovič, 2012. "Status Quo Effects in Fairness Games: Acts of Commission vs. Acts of Omission," Working Papers in Economics 12/01, University of Canterbury, Department of Economics and Finance.
    25. Menusch Khadjavi & Andreas Lange, 2015. "Doing good or doing harm: experimental evidence on giving and taking in public good games," Experimental Economics, Springer;Economic Science Association, vol. 18(3), pages 432-441, September.

    More about this item

    Keywords

    voluntary contributions; public goods; social preferences; experiments;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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