Crossing the Point of No Return : A Public Goods Experiment

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2011
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Güth, Werner
Levati, M. Vittoria
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Zusammenfassung

Participants in a public goods experiment receive private or common signals regarding the so-called "point of no return", meaning that if the group’s total contribution falls below this point, all payoffs are reduced. An individual faces the usual conflict between private and collective interests above the point of no return, while he incurs the risk of damaging everyone by not surpassing the point. Our data reveal that contributions are higher if the cost of not reaching the threshold is high. In particular if the signal is private, many subjects are not willing to provide the necessary contribution.

Zusammenfassung in einer weiteren Sprache
Fachgebiet (DDC)
330 Wirtschaft
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Public goods, provision point mechanism, experiments, reduction factor, signal
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ISO 690FISCHBACHER, Urs, Werner GÜTH, M. Vittoria LEVATI, 2011. Crossing the Point of No Return : A Public Goods Experiment
BibTex
@techreport{Fischbacher2011Cross-17675,
  year={2011},
  series={Research paper series / Thurgauer Wirtschaftsinstitut},
  title={Crossing the Point of No Return : A Public Goods Experiment},
  number={72},
  author={Fischbacher, Urs and Güth, Werner and Levati, M. Vittoria}
}
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