Intragroup Communication in a Public Goods Experiment with Nested Exchanges

Yoav Wachsman

Economics Bulletin, 2018, vol. 38, issue 4, 2217-2224

Abstract: Agents can often choose between providing a public good through a small, local exchange or a larger, global exchange. This paper reports a public goods experiment with a local exchange, which benefits the contributor's local group, and a global exchange, which benefits all the participants. The paper investigates the effects of intragroup communication on participants' allocation decisions. It finds that intragroup communication nearly eliminates free-riding but can also reduce intergroup cooperation.

Keywords: Voluntary Contributions Mechanism; Public Goods; Communication; Intergroup Cooperation (search for similar items in EconPapers)
JEL-codes: C9 H4 (search for similar items in EconPapers)
Date: 2018-12-02
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