Abstract:In the recent literature, several hypotheses have been put forward in order to explain the decline of contributions in repeated public good games. We present results of an experiment which allows to evaluate these hypotheses. The main characteristics of our experimental design are a variation of information feedback and an elicitation of individual beliefs about others' contributions. Altogether, our data support the hypothesis of conditional cooperation with a selfish bias.
Experimental and empirical evidence identifies social preferences and proposes competing models of such preferences. We find that participants match the contributions of others in the voluntary contribution mechanism (VCM). We also examine a game with different equilibria, the weakest link mechanism (WLM). Here, in contrast, participants match the minimum contribution of others.
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ABSTRACTPrevious experimental and empirical evidence has identified social preferences in the voluntary provision of public goods. A number of competing models of such preferences have been proposed. We provide evidence for one model of behavior in these games, reciprocity (or matching, or conditional cooperation).Consistent with previous research, we find that participants in the voluntary contribution mechanism attempt to match the contributions of others in their group. We also examine participants in a related game with different equilibria, the weakest-link mechanism. Here, in contrast, participa nts contribute so as to match the minimum contribution of others in their group.
JEL Classifications:C72, C92, D44, H41
Exclusion has long been employed as a common disciplinary measure against defectors, both at work and in social life. In this paper, we study the effect of excludability - exclusion of the lowest contributor - on contributions in three different team production settings. We demonstrate theoretically and experimentally that excludability increases contributions. Excludability is particularly effective in production settings where the average or maximum effort determines team production. In these settings, we observe almost immediate convergence to full contribution. In settings where the minimum effort determines team production, excludability leads to a large increase in contributions only if the value of the excluded individual's contribution to the public good is redistributed among the included individuals
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