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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/10011865465
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/10011621328
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/10011607404
We present a new and simple mechanism for repeated public good environments. In the Conditional Contribution Mechanism (CCM), agents send two message of the form, "I am willing to contribute x units to the public good if in total y units are contributed." This mechanism offers agents risk-free...
Persistent link: https://www.econbiz.de/10012104827
We analyze two incentive mechanisms as a way of financing public goods. Our mechanism can be interpreted as a variation of a parimutuel lottery in which the total rebate (prize) is made endogenous by setting it equal to a non-increasing function of total bets. The mechanism changes the nature of...
Persistent link: https://www.econbiz.de/10010754622
This paper compares two methods to encourage socially optimal provision of a public good. We compare the efficacy of vigilante justice, as represented by peer-to-peer punishment, to delegated policing, as represented by the “hired gun” mechanism, to deter free riding and improve group...
Persistent link: https://www.econbiz.de/10011056154
We report experimental findings on the impact of network structure on decentralized monitoring and punishment in public goods games. In the environments we study, individuals can only directly monitor and punish their immediate neighbors in an exogenously determined network. We examine...
Persistent link: https://www.econbiz.de/10013040459
We conduct a contribution game for a real public good and show that when the contributors value the real public good highly, they increase their contributions in each round. Thus, contrary to previous literature, free riding decreases over rounds and the end-game effect is reversed
Persistent link: https://www.econbiz.de/10013083744
Persistent link: https://www.econbiz.de/10009154963
We conduct a contribution game for a real public good and show that when the contributors value the real public good highly, they increase their contributions in each round. Thus, contrary to previous literature, free riding decreases over rounds and the end-game effect is reversed. -- public...
Persistent link: https://www.econbiz.de/10009727615