Sharing Information

Bettina Rockenbach () and Abdolkarim Sadrieh
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Bettina Rockenbach: Chair in Microeconomics, University of Erfurt

No 9029, FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management

Abstract: Customers write book reviews for Amazon.com and rate stores at BizRate.com. Car drivers call up radio stations to report traffic jams or radar traps. In many cases individuals share their information to the benefit of an unknown group of recipients, even though doing so is costly for the provider. In contrast to a standard public good, providers have no immediate benefit from information public goods. The paper reports the results of an experimental study on information sharing under two payoff conditions (opportunity announcement and hazard warning) and two information conditions (anonymous and identified provider). The experimental results show a substantial degree of information sharing. Information on extreme opportunities and extreme hazards is significantly more often provided than information on moderate prospects. Identification only plays a role in case of extreme opportunities and not in case of hazard warnings.

Keywords: Information public good; online recommendation; consumer rating; word-of-mouth communication; altruism; other-regarding behavior (search for similar items in EconPapers)
JEL-codes: C91 D03 D64 D82 H41 M31 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2009-08
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http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_29.pdf First version, 2009 (application/pdf)
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Related works:
Journal Article: Sharing information (2012)
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