Heterogeneous reactions to heterogeneity in returns from public goods

Fabrice Etilé, Pierre Combris, Urs Fischbacher, Simeon Schudy and Sabrina Teyssier ()
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Pierre Combris: ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique
Simeon Schudy: Thurgau Institute of Economics - University of Konstanz, University of Konstanz
Sabrina Teyssier: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique, ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique

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Abstract: In many cases individuals benefit differently from the provision of a public good. We study in a laboratory experiment how heterogeneity in returns and uncertainty about the own return affects unconditional and conditional contribution behavior in a linear public goods game. The elicitation of conditional contributions in combination with a within subject design allows us to investigate belief-independent and type-specific reactions to heterogeneity. We find that, on average, heterogeneity in returns decreases unconditional contributions but affects contributions only weakly. Uncertainty in addition to heterogeneity reduces conditional contributions slightly. Individual reactions to heterogeneity differ systematically. Selfish subjects and one third of conditional cooperators do not react to heterogeneity whereas the reactions of the remaining conditional cooperators vary. A substantial part of heterogeneity in reactions can be explained by inequity aversion with respect to different reference groups.

Date: 2014-06
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Published in Social Choice and Welfare, 2014, 43 (1), pp.195-217. ⟨10.1007/s00355-013-0763-x⟩

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Related works:
Journal Article: Heterogeneous reactions to heterogeneity in returns from public goods (2014)
Working Paper: Heterogeneous reactions to heterogeneity in returns from public goods (2014)
Working Paper: Heterogeneous reactions to heterogeneity in returns from public goods (2013)
Working Paper: Heterogeneous Reactions to Heterogeneity in Returns from Public Goods (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-02076872

DOI: 10.1007/s00355-013-0763-x

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