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Coordination under threshold uncertainty in a public goods game

Listed author(s):
  • Astrid Dannenberg

    ()

    (Centre for European Economic Research (ZEW))

  • Andreas L�schel

    (Centre for European Economic Research (ZEW))

  • Gabriele Paolacci

    (Ca� Foscari University of Venice)

  • Christiane Reif

    (Centre for European Economic Research (ZEW))

  • Alessandro Tavoni

    (London School of Economics and Political Science (LSE))

We explored experimentally how threshold uncertainty affects coordination success in a threshold public goods game. Whereas all groups succeeded in providing the public good when the exact value of the threshold was known, uncertainty was generally detrimental for the public good provision. The negative effect of threshold uncertainty was particularly severe when it took the form of ambiguity, i.e. when players were not only unaware of the value of the threshold but also of its probability distribution. Early signaling of willingness to contribute and share the burden equitably helped groups in coping with threshold uncertainty.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2011/WP_DSE_dannenberg_loeschel_paolacci_reif_tavoni_20_11.pdf
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Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2011_20.

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Length: 45
Date of creation: 2011
Date of revision: Nov 2011
Handle: RePEc:ven:wpaper:2011_20
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