Leadership in a Dynamic Public Goods Game: An Experimental Study

Michael Eichenseer and Johannes Moser

VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association

Abstract: We examine how leadership affects a dynamic public goods game. Using a setting where cooperation gains can be reinvested, our findings suggest that leadership has a positive impact on final wealth. Somewhat surprisingly, leadership also has a positive impact on reducing inequality within groups as measured by the Gini index. Based on a sequential prisoner's dilemma, we elicit types for conditional cooperation. Our results indicate that groups work best when led by cooperatively inclined individuals. Furthermore, early contributions by the leader are crucial and yield a high return.

Keywords: Leadership; Public Goods Game; Conditional Cooperation; Inequality; Growth; Lab Experiment (search for similar items in EconPapers)
JEL-codes: C72 C92 D63 H41 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-exp and nep-gth
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc18:181599

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