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The behavioral validity of the strategy method in public good experiments

  • Urs Fischbacher

    ()

    (University of Konstanz)

  • Simon Gaechter

    ()

    (University of Nottingham)

We compare the strategy method and the direct response method in public good experiments in a within-subject design. This comparison is interesting because the strategy method is frequently used to investigate preference heterogeneity. We find that people identified by the strategy method as conditional cooperators also behave as conditional cooperators under the direct response method. Free-rider types contribute systematically less than all others but show the most systematic deviation from the predicted contributions, because they contribute in the first half of the direct response experiment. Overall, our results support the behavioral validity of the strategy method in public good experiments.

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File URL: http://www.nottingham.ac.uk/cedex/documents/papers/2009-25.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 2009-25.

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Date of creation: Dec 2009
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Handle: RePEc:not:notcdx:2009-25
Contact details of provider: Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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Web page: http://www.nottingham.ac.uk/economics/cedex/

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