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Is there a hidden cost of imposing a minimum contribution level for public good contributions?
University of Munich, Germany; University of Gothenburg, Sweden; Queensland University of Technology, Australia.
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. University of Gothenburg, Sweden.
University of Gothenburg, Sweden.
Renmin University of China, Peoples R China.
2016 (English)In: Journal of Economic Psychology, ISSN 0167-4870, E-ISSN 1872-7719, Vol. 56, 74-84 p.Article in journal (Refereed) Published
Abstract [en]

We examine the effects of either exogenously imposing or endogenously letting subjects choose whether to impose minimum contribution levels (MCLs) in a linear public goods experiment using the strategy method. Our results on contribution levels to the public goods are fairly independent of how MCLs are imposed. We find that the main effect of an MCL on unconditional contributions is that it increases low contribution levels to the MCL imposed, while the effect of those contributing more than the MCL before its introduction depends on the size of the MCL. Unexpectedly, there is much more crowding out for a low MCL than for a relatively high MCL. However, the distribution of contribution types is stable across different MCLs. (C) 2016 Elsevier B.V. All rights reserved.

Place, publisher, year, edition, pages
ELSEVIER SCIENCE BV , 2016. Vol. 56, 74-84 p.
Keyword [en]
Cooperation; China; Experiment; Minimum level; Public good
National Category
URN: urn:nbn:se:liu:diva-131875DOI: 10.1016/j.joep.2016.05.007ISI: 000383310000005OAI: diva2:1036446

Funding Agencies|Swedish Research Council (Vetenskapsradet); Formas through the program Human Cooperation to Manage Natural Resources (COMMONS); Ideenfonds of the University of Munich - German Excellence Initiative; National Natural Science Foundation of China [71373273]

Available from: 2016-10-13 Created: 2016-10-11 Last updated: 2016-10-13

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