Sequential versus simultaneous contributions to public goods: Experimental evidence

Simon Gaechter, Daniele Nosenzo, Elke Renner and Martin Sefton ()
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Simon Gaechter: University of Nottingham
Daniele Nosenzo: University of Nottingham
Elke Renner: University of Nottingham
Martin Sefton: University of Nottingham
Authors registered in the RePEc Author Service: Simon Gächter ()

No 2009-07, Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham

Abstract: We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting (Varian, Journal of Public Economics, 1994). Our findings support the theoretical argument that sequential contributions result in lower overall provision than simultaneous contributions. However, the distribution of contributions is not as predicted: late contributors are sometimes willing to punish early low contributors by contributing less than their best response. This induces early contributors to contribute more than they otherwise would. A consequence of this is that we fail to observe a predicted first mover advantage.

Keywords: Public Goods; Voluntary Contributions; Sequential Moves; Experiment (search for similar items in EconPapers)
JEL-codes: C92 D03 H41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-pbe
Date: 2009-03
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Related works:
Working Paper: Sequential versus Simultaneous Contributions to Public Goods: Experimental Evidence (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:cdx:dpaper:2009-07

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