In this paper we show how the investment in cultural events may encourage the building of social capital and foster the development of local communities. We rely on a case study we conducted on the socio-economic impact of “La Notte della Taranta” Festival, one of the most important European...

Resources are often allocated in groups through decentralized nonmarket mechanisms. We experimentally investigate groups where a rich representative allocates resources among poorer members, who can announce disapproval by voting for a measure hurting the representative. We examine the effect of...

In public-good provision, privileged groups enjoy the advantage that some of their members find it optimal to supply a positive amount of the public good. However, the inherent asymmetric nature of these groups may make the enforcement of cooperative behavior through informal sanctioning harder...

Does adverse selection hamper the effectiveness of voluntary risk sharing? How do differences in risk profiles affect adverse selection? We experimentally investigate individuals’ willingness to share risks with others. Across treatments we vary how risk profiles differ between individuals. We...