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Social Image in Public Goods Provision with Real Effort

Emel Filiz-Ozbay and Erkut Ozbay

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: We study public goods game where the contribution efforts are observable. When the players are observed, they contribute more and free-riding diminishes significantly. On the other hand, presence of an audience does not affect the performance of players if there is no strategic aspect of the game, i.e. when they play private goods game. The findings are in line with the predictions of the social image theory where a player’s contribution is also a signal to an audience regarding how much she cares about contributing to the public goods.

Keywords: Conditional; CAPM (search for similar items in EconPapers)
Pages: 33 pages
Date: 2010-08
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-pbe and nep-pol
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