On the voluntary provision of public goods under risk

Jana Freundt and Andreas Lange

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2021, vol. 93, issue C

Abstract: This paper studies how risk impacts the voluntary provision of public goods. In a laboratory experiment, we create variants of a public good game by separating the return a subject’s contribution generates for herself vs. the return her contribution generates to others. We find a detrimental effect of risk on public good provision when returns in both dimensions are positively correlated or independent. A negative correlation leads to more stable investments. Disentangling the impact of risk in each dimension, we find that investments particularly respond to risk in the return to others. Investigating the impact of these different types of risks can inform theories on the nature of social preferences.

Keywords: Public goods; Giving under risk; Internal and external returns; Social investments (search for similar items in EconPapers)
JEL-codes: C91 D64 D81 H41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:93:y:2021:i:c:s2214804321000677

DOI: 10.1016/j.socec.2021.101727

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