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Sequential versus simultaneous contributions to public goods: Experimental evidence

  • Simon Gaechter

    (University of Nottingham)

  • Daniele Nosenzo

    (University of Nottingham)

  • Elke Renner

    (University of Nottingham)

  • Martin Sefton

    ()

    (University of Nottingham)

We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting (Varian, Journal of Public Economics, 1994). Our findings support the theoretical argument that sequential contributions result in lower overall provision than simultaneous contributions. However, the distribution of contributions is not as predicted: late contributors are sometimes willing to punish early low contributors by contributing less than their best response. This induces early contributors to contribute more than they otherwise would. A consequence of this is that we fail to observe a predicted first mover advantage.

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File URL: http://www.nottingham.ac.uk/cedex/documents/papers/2009-07.pdf
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Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2009-07.

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Date of creation: Mar 2009
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Handle: RePEc:cdx:dpaper:2009-07
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