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We study the dynamics of the private provision of a public good that requires both capacity buildup and ongoing operating costs. We show that setting a time limit for the collection of contributions dedicated to capacity buildup minimizes the utility loss at the Nash equilibrium. We test the...
Persistent link: https://www.econbiz.de/10013045067
Measuring the social preferences of economic agents using experiments has become common place. This process, while incentive compatible, is costly and time consuming, making it infeasible in many settings. We combine standard altruism and warm glow choice experiments with a battery of candidate...
Persistent link: https://www.econbiz.de/10014348297
Negative income shocks can either be the consequence of risky choices or random events. A growing literature analyzes the role of responsibility for neediness for informal financial support of individuals facing negative income shocks based on randomized experiments. In this paper, we show that...
Persistent link: https://www.econbiz.de/10012915180
We study with a sample of 1,070 primary school children, aged seven to eleven years, how altruism in a donation …
Persistent link: https://www.econbiz.de/10013057045
We devise a new experimental game by nesting a voluntary contributions mechanism in a broader spectrum of incentive schemes. With it, we study tensions between egalitarianism, equity concerns, self-interest, and the need for incentives. In a 2x2 design, subjects either vote on or exogenously...
Persistent link: https://www.econbiz.de/10013137515
When a deficit occurs in the funding of collective goods, it is usually covered by raising theamount of taxes or by rationing the supply of the goods. This article compares the efficiencyof these institutions. We report the results of a 2x2 experiment based on a game in the firststage of which...
Persistent link: https://www.econbiz.de/10005861864
The ability to punish free-riders can increase the provision of public goods. However, sometimes the benefit of increased public good provision is outweighed by the costs of punishments. One reason a group may punish to the point that net welfare is reduced is that punishment can express anger...
Persistent link: https://www.econbiz.de/10012964994
Sanctions are a common method to discourage free-riding in the provision of public goods. However, we can usually only sanction those who are detected performing the bad act of free-riding. There has been considerable research on the type of sanctions imposed, but this research almost always...
Persistent link: https://www.econbiz.de/10012918262
This paper experimentally examines how religious festivals and the degree of religiosity affect cooperation and altruistic punishment by using public goods experiments. We conducted the experiments in Turkey at different points in time; one on the most religious day during Ramadan (the Night of...
Persistent link: https://www.econbiz.de/10013117607
This paper introduces new experimental designs to enrich understanding of conditional cooperation and punishment in public good games. The key to these methods is to elicit complete contribution or punishment profiles using the strategy method. It is found that the selfish bias in conditional...
Persistent link: https://www.econbiz.de/10013125147