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Democracy and compliance in public goods games

Carlo Gallier

VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association

Abstract: I investigate if, how, and why the effect of a contribution rule in a public goods game depends on how it is implemented: endogenously chosen or externally imposed. The rule prescribes full contributions to the public good backed by a nondeterrent sanction for those who do not comply. My experimental design allows me to disentangle to what extent the effect of the contribution rule under democracy is driven by self-selection of treatments, information transmitted via the outcome of the referendum, and democracy per se. In case treatments are endogenously chosen via a democratic decision-making process, the contribution rule significantly increases contributions to the public good. However, democratic participation does not affect participants’ contribution behavior directly, after controlling for self-selection of treatments and the information transmitted by voting.

Keywords: Laboratory experiment; public good; democracy; endogenous institutions; voting; contribution rule; compliance (search for similar items in EconPapers)
JEL-codes: C91 D02 D72 K42 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-cdm, nep-exp, nep-gth, nep-law and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc18:181620

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