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Framing and Minimum Levels in Public Good Provision

Author

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  • Martinsson, Peter

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Medhin, Haileselassie

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Persson, Emil

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Using a laboratory experiment in the field, we examine how the choice architecture of framing a social dilemma – give to or take from a public good – interacts with a policy intervention that enforces a minimum contribution level to the public good. We find that cooperation is significantly higher in the give frame than in the take frame in our standard public goods experiment. When a minimum contribution level is introduced, contributions are significantly higher in the take frame since contributions are crowded out in the give frame but crowded in in the take frame. Our results therefore stress the importance of choosing the frame when making policy recommendations.

Suggested Citation

  • Martinsson, Peter & Medhin, Haileselassie & Persson, Emil, 2016. "Framing and Minimum Levels in Public Good Provision," Working Papers in Economics 656, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0656
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    File URL: http://hdl.handle.net/2077/42419
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    More about this item

    Keywords

    Choice architecture; Framing; Public goods; Minimum level; Experiment; Ethiopia.;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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