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Sequential versus Simultaneous Contributions to Public Goods: Experimental Evidence

Simon Gaechter, Daniele Nosenzo, Elke Renner and Martin Sefton
Authors registered in the RePEc Author Service: Simon Gächter

No 2602, CESifo Working Paper Series from CESifo

Abstract: We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting (Varian, Journal of Public Economics, 1994). Our findings support the theoretical argument that sequential contributions result in lower overall provision than simultaneous contributions. However, the distribution of contributions is not as predicted: late contributors are sometimes willing to punish early low contributors by contributing less than their best response. This induces early contributors to contribute more than they otherwise would. A consequence of this is that we fail to observe a predicted first mover advantage.

Keywords: public goods; voluntary contributions; sequential moves; experiment (search for similar items in EconPapers)
JEL-codes: C92 D03 H41 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Sequential versus simultaneous contributions to public goods: Experimental evidence (2009) Downloads
Working Paper: Sequential versus simultaneous contributions to public goods: Experimental evidence (2009) Downloads
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