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A Laboratory Test of Canadian Proposals for an Emission Trading Program

Stuart Mestelman (), Rob Moir and Andrew Muller

McMaster Experimental Economics Laboratory Publications from McMaster University

Abstract: We investigate the effects of heterogeneity, incomplete information and communication on aggregate contributions to a public good using the voluntary contribution mechanism in a nonlinear laboratory environment. One-dimensional heterogeneity (heterogeneity in income or preferences) and two-dimensional heterogeneity (heterogeneity in income and preferences) both increase voluntary contributions. The effect is greatest when information is incomplete in the sense that subjects do not know each other’s payoffs. Incomplete information also reduces contributions in the homogeneous case. Communication reverses the relative importance of one and two-dimensional heterogeneity in promoting cooperation.

Date: 1998-03
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Persistent link: https://EconPapers.repec.org/RePEc:mcm:mceelp:1998-03

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