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We investigate the impact of various audit schemes on the future provision of public goods, when contributing less than the average of the group is sanctioned exogenously and the probability of an audit is unknown. We study how individuals update their beliefs about the probability of being...
Persistent link: https://www.econbiz.de/10010239265
Previous research has shown that opportunities for two-sided partner choice in finitely repeated social dilemma games can promote cooperation through a combination of sorting and opportunistic signaling, with late period defections by selfish players causing an end-game decline. How such...
Persistent link: https://www.econbiz.de/10010126752
examine the relative effectiveness of these two mechanisms in a one-shot, two-person public goods game experiment. We find …
Persistent link: https://www.econbiz.de/10010504597
We study the dynamics of the private provision of a public good that requires both capacity buildup and ongoing operating costs. We show that setting a time limit for the collection of contributions dedicated to capacity buildup minimizes the utility loss at the Nash equilibrium. We test the...
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Attempts to curb illegal activity through regulation gets complicated when agents can adapt to circumvent enforcement. Economic theory suggests that conducting audits on a predictable schedule, and (counter-intuitively) at high frequency, can undermine the effectiveness of audits. We conduct a...
Persistent link: https://www.econbiz.de/10011985963
receive restricted access (a lower share). In a laboratory experiment Rank-Order-VCM elicits median contributions equal to the …
Persistent link: https://www.econbiz.de/10012064430
Many charities report donations using categories. We question whether such category reporting increases donations in a signalling game where a donor is either generous or not generous. Conditions are derived under which category reporting will increase giving or decrease giving. Category...
Persistent link: https://www.econbiz.de/10003933785