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Does heterogeneity spoil the basket? The role of productivity and feedback information on public good provision

Andrej Angelovski, Daniela Di Cagno, Werner Güth, Francesca Marazzi () and Luca Panaccione

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2018, vol. 77, issue C, 40-49

Abstract: In a circular neighborhood of eight, each member contributes repeatedly to two local public goods, one with the left and one with the right neighbor. All eight two-person games provide only local feedback information and are structurally independent in spite of their overlapping player sets. Heterogeneity is induced intra-personally by asymmetric productivity in left and right games and inter-personally by two randomly selected group members who are less privileged (LP) by being either less productive or excluded from end-of-period feedback information about their payoffs and neighbors’ contributions. Although both LP-types let the neighborhood as a whole evolve less cooperatively, their spillover dynamics differ. While less productive LPs initiate “spoiling the basket” via their low contributions, LPs with no-end-of-round information are exploited by their neighbors. Furthermore, LP-positioning, closest versus most distant, affects how the neighborhood evolves.

Keywords: Public goods; Behavioral spillovers; Voluntary contribution mechanism; Heterogeneity; Experiment (search for similar items in EconPapers)
JEL-codes: C91 C72 H41 (search for similar items in EconPapers)
Date: 2018
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Working Paper: Does Heterogeneity Spoil the Basket? The Role of Productivity and Feedback Information on Public Good Provision (2016) Downloads
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Handle: RePEc:eee:soceco:v:77:y:2018:i:c:p:40-49