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
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
New Economics Papers: this item is included in nep-exp and nep-pub
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Journal Article: Threshold-Level Public Goods Provision with Multiple Units: Experimental Effects of Disaggregated Groups with Rebates (2016)
Working Paper: Threshold Level Public Goods Provision with Multiple Units: Experimental Effects of Disaggregated Groups with Rebates (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:zwi:wpaper:24
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