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Behavioral spillovers in local public good provision: An experimental study

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  • Angelovski, Andrej
  • Di Cagno, Daniela
  • Güth, Werner
  • Marazzi, Francesca
  • Panaccione, Luca
Abstract
In a circular neighborhood, each member has a left and a right neighbor with whom(s) he interacts repeatedly. From their two separate endowment amounts individuals can contribute to each of their two structurally independent public goods, either shared only with their left, respectively right, neighbor. If most group members are discrimination averse and conditionally cooperating with their neighbors, this implies intra- as well as inter-personal spillovers which link all neighbors. Investigating individual adaptations in one’s two games with differing free-riding incentives confirms, through behavioral spillovers, that both individual contributions anchor on the local public good with the smaller free-riding incentive. Therefore asymmetry in gaining from local public goods allows to establish a higher level of voluntary cooperation.

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  • Angelovski, Andrej & Di Cagno, Daniela & Güth, Werner & Marazzi, Francesca & Panaccione, Luca, 2018. "Behavioral spillovers in local public good provision: An experimental study," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 116-134.
    • Handle: RePEc:eee:joepsy:v:67:y:2018:i:c:p:116-134
    DOI: 10.1016/j.joep.2018.05.003
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    More about this item

    Keywords

    Public goods; Behavioral spillovers; Experiments; Voluntary contribution mechanism;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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