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Explicit economic incentives designed to increase contributions to public goods and to promote other pro-social behavior sometimes are counterproductive or less effective than would be predicted among entirely self-interested individuals. This may occur when incentives adversely affect...
Persistent link: https://www.econbiz.de/10009367514
The data from experiments with the Voluntary Contributions Mechanism suggest five stylized facts, including the restart effect. To date, no theory has explained all of these facts simultaneously. We merge our Individual Evolutionary Learning model with a variation of heterogenous other-regarding...
Persistent link: https://www.econbiz.de/10010818162
Our paper investigates framing effects in a large-scale public good experiment. We measure indicators of explanations previously proposed in the literature, which when combined with the large sample, enable us to estimate a structural model of framing effects. The model captures potential causal...
Persistent link: https://www.econbiz.de/10011117655
Some philosophers and social scientists have stressed the importance for good government of an altruistic citizenry that values the well being of fellow citizens. Economists, however, have emphasized the need for incentives that induce even the self-interested to contribute to the public good....
Persistent link: https://www.econbiz.de/10010594637
The data from experiments with the Voluntary Contributions Mechanism suggest five stylized facts, including the restart effect. To date, no theory has explained all of these facts simultaneously. We merge our Individual Evolutionary Learning model with a variation of heterogeneous...
Persistent link: https://www.econbiz.de/10010608548
We explore the effect of fixed versus dynamic group membership on public good provision. In a novel experimental design, we modify the traditional voluntary contribution mechanism (VCM) by periodically replacing old members of a group with new members over time. Under this dynamic, overlapping...
Persistent link: https://www.econbiz.de/10010878538
A long series of laboratory and field experiments, as well as conventional empirical studies, has established that (1) individuals voluntarily provide themselves with public goods at levels exceeding those predicted by the Nash voluntary contributions mechanism, and (2) agents reciprocate...
Persistent link: https://www.econbiz.de/10011056309
I derive the marginal value of a public good in multiperson households, measured alternatively by one household member’s willingness to pay (WTP) for the good on behalf of the household, or by the sum of individual WTP values across family members. Households are assumed to allocate their...
Persistent link: https://www.econbiz.de/10010284356
This research is inspired by in-kind donations that have the capacity to increase the marginal benefit (productivity) in provision of public goods, for example by providing critical infrastructure that increases the productivity of resources utilized by local public good providers. We provide...
Persistent link: https://www.econbiz.de/10014374531
I derive the value of marginal changes in a public good for two-person households, measured alternatively by household member i’s willingness to pay (WTP) for the good on behalf of the household, WTPi(H), or by the sum of individual WTP values across family members, WTP(C). Households are...
Persistent link: https://www.econbiz.de/10005004404