On the behavioural relevance of optional and mandatory impure public goods: results from a laboratory experiment
Ethical goods are increasingly available in markets for conventional goods giving pro-ethically motivated consumers a convenient option to contribute to public goods. In a previous experiment we explored the behavioural relevance of impure public goods in a within-subject setting and observed reduced aggregate pro-social behavior in the presence of impure goods that favor private consumption at the expense of public good provision. In this experiment, we implement a between-subject design to test the behavioural relevance of impure public goods with only a token contribution to a public good cause. From a theoretical perspective, assuming people demand private and public characteristics regardless of how they are provided, we would expect no behavioural relevance of the presence of impure public goods. However, this experiment establishes that pro-social behaviour defined as contributing to a public good, is negatively affected by impure goods with token contributions, in comparison to when they are absent. Furthermore, if the token impure good is mandatory instead of optional the negative effect on pro-social behaviour seems to be offset. The results from this experiment suggest impure public goods are not behaviourally irrelevant, can decrease pro-social behaviour but their optional or mandatory nature can have different behavioural consequences.
|Date of creation:||Dec 2011|
|Contact details of provider:|| Postal: NIMA, EEG - Universidade do Minho, 4710-057 Braga, Portugal|
Phone: +351 253601930
Fax: +351 253601380
Web page: http://nima.eeg.uminho.pt/
|Order Information:|| Postal: NIMA, EEG - Universidade do Minho, 4710-057 Braga, Portugal|
Web: http://nima.eeg.uminho.pt/ Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edward P. Lazear & Ulrike Malmendier & Roberto A. Weber, 2012. "Sorting in Experiments with Application to Social Preferences," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 136-163, January.
- Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-598, September.
- Cornes, Richard & Sandler, Todd, 1994. "The comparative static properties of the impure public good model," Journal of Public Economics, Elsevier, vol. 54(3), pages 403-421, July.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
- Matthew J. Kotchen, 2006.
"Green Markets and Private Provision of Public Goods,"
Journal of Political Economy,
University of Chicago Press, vol. 114(4), pages 816-845, August.
- Matthew J. Kotchen, 2003. "Green Markets and Private Provision of Public Goods," Department of Economics Working Papers 2003-05, Department of Economics, Williams College.
- Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
- Jason Dana & Roberto Weber & Jason Kuang, 2007. "Exploiting moral wiggle room: experiments demonstrating an illusory preference for fairness," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(1), pages 67-80, October.
- Munro, Alistair & Valente, Marieta, 2008.
"Green goods: are they good or bad news for the environment? Evidence from a laboratory experiment on impure public goods,"
13024, University Library of Munich, Germany, revised 14 Jan 2009.
- Alistair Munro & Marieta Valente, 2016. "Green Goods: Are They Good or Bad News for the Environment? Evidence from a Laboratory Experiment on Impure Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 317-335, October.
- Alistair Munro & Marieta Valente, 2008. "Green goods: are they good or bad news for the environment? Evidence from a laboratory experiment on impure public goods," NIMA Working Papers 37, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho, revised Dec 2011.
- Dana, Jason & Cain, Daylian M. & Dawes, Robyn M., 2006. "What you don't know won't hurt me: Costly (but quiet) exit in dictator games," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(2), pages 193-201, July.
- Sebastian J. Goerg & Johannes Kaiser, 2009. "Nonparametric testing of distributions—the Epps–Singleton two-sample test using the empirical characteristic function," Stata Journal, StataCorp LP, vol. 9(3), pages 454-465, September.
When requesting a correction, please mention this item's handle: RePEc:nim:nimawp:45/2011. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NIMA)
If references are entirely missing, you can add them using this form.