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The dos and don'ts of leadership in sequential public goods experiments

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  • Maria Fernanda Rivas

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  • Matthias Sutter

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Abstract

We study the effects of leadership in the provision of public goods by examining (i) the relative importance of reward and punishment as leadership devices, (ii) whether endogenous leadership is more efficient than exogenously enforced leadership, and (iii) whether leaders contributing last, instead of first, also increase contributions. The experimental results are: (i) Reward options yield lower contributions than punishment through exclusion. (ii) Endogenous leadership is much more efficient than exogenously imposed leadership. (iii) Sequentiality itself is not beneficial for contributions since groups where the leader contributes as the last member do not contribute more than groups without a leader.

Suggested Citation

  • Maria Fernanda Rivas & Matthias Sutter, 2008. "The dos and don'ts of leadership in sequential public goods experiments," Working Papers 2008-25, Faculty of Economics and Statistics, University of Innsbruck.
  • Handle: RePEc:inn:wpaper:2008-25
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    Cited by:

    1. Daniele Nosenzo & Martin Sefton, 2011. "Endogenous Move Structure and Voluntary Provision of Public Goods: Theory and Experiment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 721-754, October.
    2. Koukoumelis, Anastasios & Levati, M. Vittoria & Weisser, Johannes, 2012. "Leading by words: A voluntary contribution experiment with one-way communication," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 379-390.
    3. Simon Gächter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2012. "Who Makes A Good Leader? Cooperativeness, Optimism, And Leading-By-Example," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 953-967, October.
    4. Edward J. Cartwright & Denise Lovett, 2014. "Conditional Cooperation and the Marginal per Capita Return in Public Good Games," Games, MDPI, Open Access Journal, vol. 5(4), pages 1-23, November.
    5. Jordi Brandts & Christina Rott & Carles Solà, 2015. "Not Just Like Starting Over: Leadership and Revivification of Cooperation in Groups," Working Papers 775, Barcelona Graduate School of Economics.
    6. Ludwig, Sandra & Strassmair, Christina, 2009. "An Experimental study on the information structure in teams," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 277, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    7. Johannes Weisser, 2011. "Leading by example in intergroup competition: An experimental approach," Jena Economic Research Papers 2011-067, Friedrich-Schiller-University Jena.

    More about this item

    Keywords

    Public goods experiment; Leadership; Exclusion power; Reward; Endogeneity;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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