Increasing Voluntary Contribution in a Public Goods Game through a Behavioral Policy Implementation: an Experimental Test
The aim of this work is to show that in a repeated Public Goods Game situation it is possible, through the implementation of a properly specified policy reward, to increase and sustain higher level of contribution with respect to the only "punishment" equilibrium at net zero costs. I investigate theoretically the possibility that implementing a lottery, mechanism in a social dilemma could drive a consistent portion of the game participants’ decision to a different decision choice with respect to Von Neumann-Morgenstern Expected Utility Theory prediction. In particular, grounding my expectations on Cumulative Prospect Theory, I anticipate and exploit the players’ overweight of an unlikely event such as the gain deriving from the extraction of a single high prize assigned randomly at the end of all the treatments to one individual among the sub-group of players that choose to contribute at least the prescribed amount to the public good. I present a model that exploiting this regularity in economic decision making and endogenizing the probability of winning the final prize could increase the level of contribution to the public good without additional expenditure. Then I test this theoretical prediction setting up a controlled laboratory experiment.
|Date of creation:||26 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: P.le della Vittoria, 15 - 47100 Forlì, Italy|
Phone: +39 0543 62327
Fax: +39 0543 374676
Web page: http://www.aiccon.it/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:aiccon:2012_109. 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: (Paolo Venturi)
If references are entirely missing, you can add them using this form.