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Heterogeneous productivity in voluntary public good provision - An experimental analysis

Author

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  • Gerlinde Fellner

    (Department of Economics, Vienna University of Economics & B.A.)

  • Yoshio Iida

    (Faculty of Economics, Kyoto Sangyo University, Kyoto, Japan)

  • Sabine Kröger

    (Laval University, Department of Economics, Quebec, Canada)

  • Erika Seki

    (Department of Economics, University of Aberdeen, Scotland, UK)

Abstract

This article experimentally examines voluntary contributions when group members' marginal returns to the public good vary. The experiment implements two marginal return types, low and high, and uses the information that members have about the heterogeneity to identify the applied contribution norm. We find that norms vary with the information environment. If agents are aware of the heterogeneity, contributions increase in general. However, high types contribute more than low types when contributions can be linked to the type of the donor but contribute less otherwise. Low types, on the other hand, contribute more than high types when group members are aware of the heterogeneity but contributions cannot be linked to types. Our results underline the importance of the information structure when persons with different abilities contribute to a joint project, as in the context of teamwork or charitable giving.

Suggested Citation

  • Gerlinde Fellner & Yoshio Iida & Sabine Kröger & Erika Seki, 2010. "Heterogeneous productivity in voluntary public good provision - An experimental analysis," Department of Economics Working Papers wuwp133, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp133
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    References listed on IDEAS

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    Cited by:

    1. Kohei Nitta, 2014. "The Effect of Income Heterogeneity in An Experiment with Global and Local Public Goods," Working Papers 201403, University of Hawaii at Manoa, Department of Economics.
    2. Kesternich, Martin & Lange, Andreas & Sturm, Bodo, 2014. "The impact of burden sharing rules on the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 107-123.
    3. Kerri Brick & Martine Visser & Zoe Hoven, 2016. "Cooperation and Climate Change: Can Communication Facilitate the Provision of Public Goods in Heterogeneous Settings?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(3), pages 421-443, July.
    4. Philipp E. Otto & Friedel Bolle, 2016. "Organizational power: Should remuneration heterogeneity mirror hierarchy?," Review of Economic Design, Springer;Society for Economic Design, vol. 20(3), pages 187-205, September.
    5. Urs Fischbacher & Simeon Schudy & Sabrina Teyssier, 2014. "Heterogeneous reactions to heterogeneity in returns from public goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 195-217, June.
    6. Sobei Oda & Erika Seki & Yan Zhou, 2013. "The Effect of Information Provision on Voluntary Contributions to Public Goods: A Field Experiment on Blood Donation," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 9(2), pages 185-209, July.
    7. Baland, Jean-Marie & Gangadharan, Lata & Maitra, Pushkar & Somanathan, Rohini, 2017. "Repayment and exclusion in a microfinance experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 176-190.
    8. Kamijo, Yoshio, 2016. "Rewards versus punishments in additive, weakest-link, and best-shot contests," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 17-30.
    9. Robbett, Andrea, 2016. "Sustaining cooperation in heterogeneous groups," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 121-138.
    10. Andrea Robbett, 2016. "Community dynamics in the lab," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(3), pages 543-568, March.
    11. Lindokuhle Njozela & Justine Burns & Arnim Langer, 2018. "The Effects of Social Exclusion and Group Heterogeneity on the Provision of Public Goods," Games, MDPI, vol. 9(3), pages 1-21, August.
    12. Kingsley, David C., 2016. "Endowment heterogeneity and peer punishment in a public good experiment: Cooperation and normative conflict," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 60(C), pages 49-61.
    13. Koessler, Ann-Kathrin & Müller, Julia & Zitzelsberger, Sonja, 2023. "Asymmetric heterogeneities and the role of transfers in a public goods experiment," European Economic Review, Elsevier, vol. 159(C).
    14. Anna Lou Abatayo & Lea Skræp Svenningsen & Bo Jellesmark Thorsen, 2020. "Thankful or Thankless: Does the Past’s Altruism Increase the Present’s Public Good Contributions?," Games, MDPI, vol. 11(1), pages 1-28, January.
    15. Yoshio Kamijo, 2014. "A theory of sanctions: Objectives, degree of heterogeneity, and growth potential matter for optimal use of carrot or stick," Working Papers SDES-2014-13, Kochi University of Technology, School of Economics and Management, revised Oct 2014.
    16. Kölle, Felix, 2015. "Heterogeneity and cooperation: The role of capability and valuation on public goods provision," Journal of Economic Behavior & Organization, Elsevier, vol. 109(C), pages 120-134.
    17. Felix Kolle, 2012. "Heterogeneity and Cooperation in Privileged Groups: The Role of Capability and Valuation on Public Goods Provision," Discussion Papers 2012-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    18. Dominik Doll & Eberhard Feess & Alwine Mohnen, 2017. "Ability, Team Composition, and Moral Hazard: Evidence from the Laboratory," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 18(1), pages 49-70, February.
    19. Zack Dorner & Steven Tucker & Gazi Hassan, 2021. "A veil of ignorance: uncertain and ambiguous individual productivity supports stable contributions to a public good," Working Papers in Economics 21/01, University of Waikato.
    20. De Geest, Lawrence R. & Kingsley, David C., 2019. "Endowment heterogeneity, incomplete information & institutional choice in public good experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 83(C).

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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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