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Leading by example in a public goods experimentwith benefit heterogeneity

Author

Listed:
  • Ju, Ying

    (University of Munich, Munich, Germany)

  • Kocher, Martin G.

    (Institute for Advanced Studies, Vienna, Department of Economics, University of Vienna, Austria, University of Gothenburg, Sweden)

Abstract
Social dilemmas such as greenhouse gas emission reduction are often characterized by heterogeneity in benefits from solving the dilemma. How should leadership of group members be organized in such a setting? We implement a laboratory public goods experiment with heterogeneous marginal per capita returns from the public good and leading by example that is either implemented exogenously or by self-selection. Our results suggest that both exogenous and selfselected leadership only have a small effect on contributions to the public good. We do not find significant differences in contributions for exogenous and self-selected leadership. Leaders seem to need additional instruments to be more effective when benefits are heterogeneous.

Suggested Citation

  • Ju, Ying & Kocher, Martin G., 2020. "Leading by example in a public goods experimentwith benefit heterogeneity," IHS Working Paper Series 25, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihswps:25
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    File URL: https://irihs.ihs.ac.at/id/eprint/5469/
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    More about this item

    Keywords

    Public goods experiment; heterogeneous benefits; leading by example;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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