Behavioral Spillovers in Local Public Goods Provision: an Experimental Study

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

No 9/2015, Working Papers CESARE from Dipartimento di Economia e Finanza, LUISS Guido Carli

Abstract: In a circular neighborhood, each member has a left and a right neighbor with whom (s)he interacts repeatedly. From their two separate endowment amounts individuals can contribute to each of their two structurally independent public goods, either shared only with their left, respectively right, neighbor. If most group members are discrimination averse and conditionally cooperating with their neighbors, this implies intra- as well as interpersonal spillovers which link all neighbors. Investigating individual adaptations in one’s two games with differing free-riding incentives confirms, through behavioral spillovers, that both individual contributions anchor on the local public good with the smaller free-riding incentive. Therefore asymmetry in gaining from local public goods allows to establish a higher level of voluntary cooperation.

Keywords: Public goods; experiments; voluntary contribution mechanism (search for similar items in EconPapers)
JEL-codes: C72 C91 H41 (search for similar items in EconPapers)
Date: 2015-12
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth, nep-hpe and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Behavioral spillovers in local public good provision: An experimental study (2018)
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