Using a simple decision-theoretic approach, we formalize how agents with different kinds of intrinsic motivations react to the introduction of monetary incentives. We contend that empirical results supporting the existence of a crowding-out effect in various contexts hide a more complex reality....

Public good provision is often local and also affects bystanders. Is provision harder if contributions harm bystanders, and is provision easier if outsiders gain a windfall profit? In an experiment we observe that both positive and negative externalities reduce provision levels whenever actors...

Individuals with a preference for keeping moral obligations may dislike learning that voluntary contributions are socially valuable: Such informa- tion can trigger unpleasant feelings of cognitive dissonance. I show that if initial beliefs about the social value of contributions are sufficiently...

In this paper we consider the problem of sharing water from a river among a group of agents (countries, cities, firms) located along the river. The benefit of each agent depends on the amount of water consumed by the agent. An allocation of the water among the agents is efficient when it...

This discussion paper led to a publication in <A href="http://www.sciencedirect.com/science/article/pii/S0095069611001574">, 'Journal of Environmental Economics and Management'</A>, 63(3), 388-403.<p>In this paper we consider the problem of sharing water from a river among a group of agents (countries, cities, firms) located along the river. The benefit of each agent depends on...</p></a>