Voluntary contributions with risky and uncertain marginalreturns: the importance of the minimal value

Previous research indicates that risky and uncertain marginal returnsfrom the public good significantly lower contributions. This paper presentsexperimental results illustrating that the effects of risk and uncertainty dependon the employed parameterization. Specifically, if the value of the marginal percapita return under the worst state of nature allows for some efficiency gains,the presence of risk and uncertainty about the public good’s value is not detrimentalto cooperation. This finding casts doubt on the hypothesis that riskand uncertainty, per se, weaken people’s willingness to contribute...