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We experimentally test different rule-based contribution mechanisms in a repeated 4-player public goods game with endowment heterogeneity and compare them to a VCM, distinguishing between a random- and an effort-based allocation of endowments. We find that endowment heterogeneities limit the...
Persistent link: https://www.econbiz.de/10010957679
We investigate how burden sharing rules may impact the voluntary provision of a public good which generates heterogeneous benefits to agents. We compare different rule-based contribution schemes that are based on the principle of the smallest common denominator: all agents can suggest a minimum...
Persistent link: https://www.econbiz.de/10010957721
literature focuses on individual contributions, many real-world problems involve the formation of institutions among subgroups … coalitions in different institutions and compares those to a voluntary contribution mechanism. The experiment confirms the rather … smallest common denominator being binding. The experiment thereby shows that the acceptance of institutions depends on how …
Persistent link: https://www.econbiz.de/10008568601