Heterogeneous Reactions to Heterogeneity in Returns from Public Goods

Urs Fischbacher, Simeon Schudy and Sabrina Teyssier

No 2012-14, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

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 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 does not affects conditional 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 which accounts for different reference groups subjects compare to.

Keywords: public goods; social preferences; conditional cooperation; heterogeneity (search for similar items in EconPapers)
JEL-codes: C72 C91 H41 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2012-03-31
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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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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