Competition for status acquisition in public good games
This paper examines the role of status acquisition as a motive for giving in voluntary contri- butions to public goods. In particular, every donor's status is given by the difference between his contribution and that of the other donor. Specifically, I show that contributors give more than in standard models where status is not considered, and their donation is increasing in the value they assign to status. In addition, players'contributions are increasing in the value that their opponents assign to status, reflecting donors' intense competition to gain social status. Furthermore, I consider contributors'equilibrium strategies both in simultaneous and sequen- tial contribution mechanisms. Then, I compare total contributions in both of these mechanisms. I find that the simultaneous contribution order generates higher total contributions than the sequential mechanism only when donors are sufficiently homogeneous in the value they assign to status. Otherwise, the sequential mechanism generates the highest contributions. Updated 6-03-09.
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- Potters, Jan & Sefton, Martin & Vesterlund, Lise, 2005.
"After you--endogenous sequencing in voluntary contribution games,"
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- Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2005. "After you - endogenous sequencing in voluntary contribution games," Other publications TiSEM db491f52-df7b-43dd-ab2b-7, Tilburg University, School of Economics and Management.
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"The Economic Value of Status,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics),
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- Romano, Richard & Yildirim, Huseyin, 2001. "Why charities announce donations: a positive perspective," Journal of Public Economics, Elsevier, vol. 81(3), pages 423-447, September.
- repec:pit:wpaper:266 is not listed on IDEAS
- Congleton, Roger D., 1989. "Efficient status seeking: Externalities, and the evolution of status games," Journal of Economic Behavior & Organization, Elsevier, vol. 11(2), pages 175-190, March.
- Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
- John Morgan, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 761-784.
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