scispace - formally typeset
Open AccessJournal ArticleDOI

A simple mechanism for the efficient provision of public goods - experimental evidence

Reads0
Chats0
TLDR
In this paper, a series of experiments designed to investigate the factor of incentive mechanisms in the case of private provisions of public goods is presented. But the results showed that the proposed incentive mechanism is very promising.
Abstract
The author reports on a series of experiments designed to investigate the factor of incentive mechanisms in the case of private provisions of public goods. In the Control treatment, there was no mechanism so that subjects faced strong free-riding incentives. In the so-called Falkinger mechanism treatment, the author implemented the Falkinger mechanism. The studies explored the impact of the mechanism in different economic environments. Results showed that the proposed incentive mechanism is very promising. Section I of the paper introduces the mechanism to be examined. Section II discusses the experimental design. Empirical results are provided in Section III, and Section IV interprets these results followed by a summary.

read more

Content maybe subject to copyright    Report

University of Zurich
Zurich Open Repository and Archive
Winterthurerstr. 190
CH-8057 Zurich
http://www.zora.unizh.ch
Year: 2000
A simple mechanism for the efficient provision of public goods:
experimental evidence
Falkinger, Josef; Fehr, Ernst; Gächter, Simon; Winter-Ebmer, Rudolf
Falkinger, Josef; Fehr, Ernst; Gächter, Simon; Winter-Ebmer, Rudolf. A simple mechanism for the efficient
provision of public goods: experimental evidence. American Economic Review 2000, 90(1):247-264.
Postprint available at:
http://www.zora.unizh.ch
Posted at the Zurich Open Repository and Archive, University of Zurich.
http://www.zora.unizh.ch
Originally published at:
American Economic Review 2000, 90(1):247-264
Falkinger, Josef; Fehr, Ernst; Gächter, Simon; Winter-Ebmer, Rudolf. A simple mechanism for the efficient
provision of public goods: experimental evidence. American Economic Review 2000, 90(1):247-264.
Postprint available at:
http://www.zora.unizh.ch
Posted at the Zurich Open Repository and Archive, University of Zurich.
http://www.zora.unizh.ch
Originally published at:
American Economic Review 2000, 90(1):247-264

A simple mechanism for the efficient provision of public goods:
experimental evidence
Abstract
The author reports on a series of experiments designed to investigate the factor of incentive mechanisms
in the case of private provisions of public goods. In the Control treatment, there was no mechanism so
that subjects faced strong free-riding incentives. In the so-called Falkinger mechanism treatment, the
author implemented the Falkinger mechanism. The studies explored the impact of the mechanism in
different economic environments. Results showed that the proposed incentive mechanism is very
promising. Section I of the paper introduces the mechanism to be examined. Section II discusses the
experimental design. Empirical results are provided in Section III, and Section IV interprets these results
followed by a summary.




Citations
More filters
Journal ArticleDOI

Endogenous transfers in the Prisoner's Dilemma game: An experimental test of cooperation and coordination

TL;DR: There is substantial scope for this compensation mechanism for promoting cooperation in prisoner’s dilemma games to achieve beneficial social outcomes in commerce and in international affairs, and reason to be concerned about the ability of firms to design collusive agreements.
Journal ArticleDOI

The Role of Rivalry: Public Goods Versus Common-Pool Resources

TL;DR: Despite a large theoretical and empirical literature on public goods and common-pool resources, a systematic comparison of these two types of social dilemmas is lacking as mentioned in this paper, despite the fact that there is some conf...
Journal ArticleDOI

Should Managers Use Team-Based Contests?

TL;DR: A behavioral economics model shows that if contestants are averse to being responsible for the team's loss, a team-based TB contest can yield higher effort than an individual-based IB contest, contrary to those of standard economics models, which favor IB contests over TB contests.
Journal ArticleDOI

Integrating simultaneous prosocial and antisocial behavior into theories of collective action.

TL;DR: It is suggested that market integration, economic diversification, and strengthened group identity in MPAs are the main potential mechanisms for the simultaneity of prosocial and antisocial behavior in the context of marine protected areas.
Journal ArticleDOI

Nudges in the marketplace: The response of household electricity consumption to information and monetary incentives

TL;DR: In this article, the authors provide field evidence from India examining changes in electricity consumption in response to various behavioral interventions such as weekly reports with peer comparisons of electricity use, reports augmented with monetary incentives to reduce consumption and price variation.
References
More filters
Book

An introduction to the bootstrap

TL;DR: This article presents bootstrap methods for estimation, using simple arguments, with Minitab macros for implementing these methods, as well as some examples of how these methods could be used for estimation purposes.
Book

Nonparametric statistics for the behavioral sciences

Sidney Siegel
TL;DR: This is the revision of the classic text in the field, adding two new chapters and thoroughly updating all others as discussed by the authors, and the original structure is retained, and the book continues to serve as a combined text/reference.
Journal ArticleDOI

z-Tree: Zurich toolbox for ready-made economic experiments

TL;DR: Z-Tree as mentioned in this paper is a toolbox for ready-made economic experiments, which allows programming almost any kind of experiments in a short time and is stable and easy to use.
Journal ArticleDOI

A theory of fairness, competition and cooperation

TL;DR: This paper showed that if some people care about equity, the puzzles can be resolved and that the economic environment determines whether the fair types or the selesh types dominate equilibrium behavior in cooperative games.
Journal ArticleDOI

The Pure Theory of Public Expenditure

TL;DR: In this paper, the authors propose a method to use the information of the user's interaction with the service provider in order to improve the quality of the service provided to the user.
Related Papers (5)