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Behaviour in a Two-Stage Two Public Goods Experiment

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  • Massimo Finocchiaro Castro

    (Department of Economics, Royal Holloway College, University of London & DEMQ, University of Catania)

Abstract

In a two-stage two-public good experiment, we study the effect that subjects’ possibility of contributing to a public good in the first stage of the game has on the voluntary contributions to the second public good. Our results show that subjects do not follow either the Nash strategy or the Pareto efficient strategy and that they perceive the two public goods as substitutes.

Suggested Citation

  • Massimo Finocchiaro Castro, 2005. "Behaviour in a Two-Stage Two Public Goods Experiment," Experimental 0504002, EconWPA.
  • Handle: RePEc:wpa:wuwpex:0504002 Note: Type of Document - pdf; pages: 14
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    File URL: http://econwpa.repec.org/eps/exp/papers/0504/0504002.pdf
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    References listed on IDEAS

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    1. Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Andrew Muller, R., 2002. "Crowding-out voluntary contributions to public goods," Journal of Economic Behavior & Organization, Elsevier, pages 305-317.
    2. Todd L. Cherry & Stephan Kroll & Jason F. Shogren, 2003. "The Impact of Endowment Heterogeneity and Origin on Public Good Contributions: Evidence from the Lab," Working Papers 03-05, Department of Economics, Appalachian State University.
    3. Kenneth Chan & Stuart Mestelman & Robert Moir & R. Muller, 1999. "Heterogeneity and the Voluntary Provision of Public Goods," Experimental Economics, Springer;Economic Science Association, vol. 2(1), pages 5-30, August.
    4. Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, pages 1605-1623.
    5. Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, pages 1605-1623.
    6. Max Albert & Werner Güth & Erich Kirchler & Boris Maciejovsky, 2007. "Are we nice(r) to nice(r) people?—An experimental analysis," Experimental Economics, Springer;Economic Science Association, vol. 10(1), pages 53-69, March.
    7. Andreoni, James, 1995. "Cooperation in Public-Goods Experiments: Kindness or Confusion?," American Economic Review, American Economic Association, pages 891-904.
    8. Palfrey, Thomas R & Prisbrey, Jeffrey E, 1997. "Anomalous Behavior in Public Goods Experiments: How Much and Why?," American Economic Review, American Economic Association, pages 829-846.
    9. Chaudhuri, Ananish & Sopher, Barry & Strand, Paul, 2002. "Cooperation in social dilemmas, trust and reciprocity," Journal of Economic Psychology, Elsevier, pages 231-249.
    10. Andreoni, J., 1993. "Cooperation in Public Goods Experiments: Kindness or Confusion?," Working papers 9309, Wisconsin Madison - Social Systems.
    11. Daniel Houser & Robert Kurzban, 2002. "Revisiting Kindness and Confusion in Public Goods Experiments," American Economic Review, American Economic Association, pages 1062-1069.
    12. Finocchiaro Castro Massimo, 2004. "Cultural Education and the Voluntary Provision of Cultural Goods: An Experimental Study," Experimental 0404002, EconWPA.
    13. Chan, Kenneth S. & Mestelman, Stuart & Muller, R. Andrew, 2008. "Voluntary Provision of Public Goods," Handbook of Experimental Economics Results, Elsevier.
    14. Cherry, Todd L. & Kroll, Stephan & Shogren, Jason F., 2005. "The impact of endowment heterogeneity and origin on public good contributions: evidence from the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 57(3), pages 357-365, July.
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    Cited by:

    1. Massimo Finocchiaro Castro, 2005. "Cultural Goods and Laboratory Experiments," Royal Holloway, University of London: Discussion Papers in Economics 05/06, Department of Economics, Royal Holloway University of London, revised May 2005.
    2. Massimo Castro, 2006. "Cultural goods and laboratory experiments," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, pages 67-79.

    More about this item

    Keywords

    public goods; experiments; voluntary provision;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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