IDEAS home Printed from https://ideas.repec.org/p/crf/wpaper/11-03.html

Public Good and Private Good Valuation for Waiting, Time Reduction: A Laboratory Study

Author

Listed:
  • Tibor Neugebauer

    (Luxembourg School of Finance, University of Luxembourg)

  • Stefan Traub

    (University of Bremen)

Abstract

In a laboratory experiment subjects were endowed with money and waiting time. Preferences for waiting time reduction were elicited with salient rewards both as a private good and as a public good. The allocations of the public good that were theoretically predicted by the Nash equilibrium and the Lindahl equilibrium, respectively, were computed from the individual private good valuations and compared with the subjects’ actual contributions. We found a significant positive correlation between private good valuations in terms of willingness-to-pay and public good valuations in terms of voluntary contributions. Group contributions to public waiting time reduction significantly exceeded the non-cooperative prediction and were close to the socially optimal level. However, for a majority of subjects, the Lindahl equilibrium was not able to predict the observed contributions.

Suggested Citation

  • Tibor Neugebauer & Stefan Traub, 2011. "Public Good and Private Good Valuation for Waiting, Time Reduction: A Laboratory Study," LSF Research Working Paper Series 11-03, Luxembourg School of Finance, University of Luxembourg.
    • Handle: RePEc:crf:wpaper:11-03
    as

    Download full text from publisher

    File URL: http://www.lsf.lu/index.php/eng/content/download/2418/11996/file/11-03.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Englmaier, Florian & Gebhardt, Georg, 2016. "Social dilemmas in the laboratory and in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 85-96.
    3. Dertwinkel-Kalt, Markus & Köhler, Katrin, 2016. "Exchange asymmetries for bads? Experimental evidence," European Economic Review, Elsevier, vol. 82(C), pages 231-241.
    4. Dold, Malte & Khadjavi, Menusch, 2017. "Jumping the queue: An experiment on procedural preferences," Games and Economic Behavior, Elsevier, vol. 102(C), pages 127-137.
    5. Alexander L. Davis & Nadja R. Jehli & John H. Miller & Roberto A. Weber, 2011. "Generosity across contexts," ECON - Working Papers 050, Department of Economics - University of Zurich, revised Mar 2015.
    6. Jouxtel, Justine, 2019. "Voluntary contributions of time: Time-based incentives in a linear public goods game," Journal of Economic Psychology, Elsevier, vol. 75(PA).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:crf:wpaper:11-03. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martine Zenner The email address of this maintainer does not seem to be valid anymore. Please ask Martine Zenner to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/sfsculu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.