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Threshold Level Public Goods Provision with Multiple Units: Experimental Effects of Disaggregated Groups with Rebates

Pengfei Liu (), Stephen Swallow () and Christopher Anderson ()
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Christopher Anderson: University of Washington

No 24, Working Papers from University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy

Abstract: We introduce two institutions that provide multiple public good units, assuming that a market-maker has the ability to establish groups of contributors. We set up a public good experiment where either all N individuals form one group to provide two units, or divide the N participants into two groups, and each group provides one unit separately, with all individuals benefiting for any unit(s) provided. Our results show that, under certain circumstances, the latter approach provides more of both units, and it encourages more contribution on average. We also explore the performance of two rebate rules under the two grouping approaches.

Keywords: Experimental economics; Grouping approach; Provision point mechanism; Rebate; Environmental economics; Ecosystem Service Markets (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-11
New Economics Papers: this item is included in nep-exp and nep-pub
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Related works:
Journal Article: Threshold-Level Public Goods Provision with Multiple Units: Experimental Effects of Disaggregated Groups with Rebates (2016) Downloads
Working Paper: Threshold Level Public Goods Provision with Multiple Units: Experimental Effects of Disaggregated Groups with Rebates (2013) Downloads
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