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Public Goods, Social Norms and Naive Beliefs

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  • Edward Cartwright
  • Amrish Patel

Abstract

An individual’s contribution to a public good may be seen by others as a signal of attributes such as generosity or wealth. An individual may, therefore, choose their contribution so as to send an appropriate signal to others. In this paper we question how the inferences made by others will influence the amount contributed to the public good. Evidence suggests that individuals are naive and biased towards taking things at "face value". We contrast, therefore, contributions made to a public good if others are expected to make rational inferences versus contributions if others are expected to make naive inferences.

Suggested Citation

  • Edward Cartwright & Amrish Patel, 2008. "Public Goods, Social Norms and Naive Beliefs," Studies in Economics 0807, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0807
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    Cited by:

    1. Montero, Maria & Sheth, Jesal D., 2021. "Naivety about hidden information: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 92-116.
    2. Gürerk, Özgür & Lauer, Thomas & Scheuermann, Martin, 2018. "Leadership with individual rewards and punishments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 74(C), pages 57-69.
    3. Nathan Berg & Jeong-Yoo Kim, 2016. "Harsh Norms And Screening For Loyalty," Bulletin of Economic Research, Wiley Blackwell, vol. 68(3), pages 205-217, April.
    4. Amrish Patel & Edward Cartwright, 2012. "Naïve Beliefs and the Multiplicity of Social Norms," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(2), pages 280-289, June.
    5. Cartwright, Edward & Patel, Amrish, 2013. "How category reporting can improve fundraising," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 73-90.
    6. Amrish Patel & Edward Cartwright, 2009. "Social Norms and Naive Beliefs," Studies in Economics 0906, School of Economics, University of Kent.
    7. Gerald Eisenkopf & Torben Kölpin, 2021. "Leading-by-Example: A meta-analysis," TWI Research Paper Series 125, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    8. Edward Cartwright & Amrish Patel, 2009. "Does category reporting increase donations to charity? A signalling game approach," Studies in Economics 0924, School of Economics, University of Kent.

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    More about this item

    Keywords

    signalling; naive beliefs; public goods;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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