The effect of heterogeneity and risk on co-operation: Experimental evidence

Anwesha Banerjee

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2024, vol. 109, issue C

Abstract: Using data from a laboratory experiment, I study how co-operation is affected when the benefit from the public good is risky (uncertain) and heterogeneous amongst members of a group. I investigate whether heterogeneity in benefits affects contributions differently under certainty and uncertainty, and whether the distribution of risk within the group affects contribution behavior. I find that heterogeneity in benefits affects contributions less under uncertainty as compared to certainty and that the distribution of risk within the group has no significant effect on co-operative behavior, but these results do not hold once we control for conditional contributions.

Keywords: Public goods; Uncertainty; Experiment (search for similar items in EconPapers)
JEL-codes: C91 C92 H41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:109:y:2024:i:c:s2214804324000053

DOI: 10.1016/j.socec.2024.102165

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