Heterogeneous Reactions to Heterogeneity in Returns from Public Goods

Fischbacher, Urs; Schudy, Simeon; Teyssier, Sabrina

Heterogeneous Reactions to Heterogeneity in Returns from Public Goods

Files

Fischbacher_0-274347.pdf(813.44 KB)

Date

2012

Authors

Fischbacher, Urs

Schudy, Simeon

Teyssier, Sabrina

Series

Working Paper Series / Department of Economics; 2012‐14

Publication type

Working Paper/Technical Report

Abstract

In many cases individuals benefit differently from the provision of a public good. We study in a laboratory experiment how heterogeneity in returns and uncertainty affects unconditional and conditional contribution behavior in a linear public goods game. The elicitation of conditional contributions in combination with a within subject design allows us to investigate belief-independent and type-specific reactions to heterogeneity. We find that, on average, heterogeneity in returns decreases unconditional contributions but does not affects conditional contributions only weakly. Uncertainty in addition to heterogeneity reduces conditional contributions slightly. Individual reactions to heterogeneity differ systematically. Selfish subjects and one third of conditional cooperators do not react to heterogeneity whereas the reactions of the remaining conditional cooperators vary. A substantial part of heterogeneity in reactions can be explained by inequity aversion which accounts for different reference groups subjects compare to.

Subject (DDC)

330 Economics

Keywords

public goods, social preferences, conditional cooperation, heterogeneity

Cite This

ISO 690

FISCHBACHER, Urs, Simeon SCHUDY, Sabrina TEYSSIER, 2012. Heterogeneous Reactions to Heterogeneity in Returns from Public Goods

BibTex

@techreport{Fischbacher2012Heter-29776,
  year={2012},
  series={Working Paper Series / Department of Economics},
  title={Heterogeneous Reactions to Heterogeneity in Returns from Public Goods},
  number={2012‐14},
  author={Fischbacher, Urs and Schudy, Simeon and Teyssier, Sabrina}
}

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Bibliography of Konstanz

Yes