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Behavioral Spillovers in Local Public Goods Provision: an Experimental Study

Author

Listed:
  • Andrej Angelovski

    (LUISS Guido Carli, Rome)

  • Daniela Di Cagno

    (LUISS Guido Carli, Rome)

  • Werner Güth

    (Luiss Guido Carli, Rome; Frankfurt School of Finance and Management, Frankfurt; Max Planck Institute on Collective Goods, Bonn)

  • Francesca Marazzi

    (Università degli Studi di Roma Tor Vergata)

  • Luca Panaccione

    (Università degli Studi di Roma Tor Vergata)

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 interpersonal 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.

Suggested Citation

  • Andrej Angelovski & Daniela Di Cagno & Werner Güth & Francesca Marazzi & Luca Panaccione, 2015. "Behavioral Spillovers in Local Public Goods Provision: an Experimental Study," Working Papers CESARE 9/2015, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    • Handle: RePEc:lui:cesare:1509
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    Cited by:

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    More about this item

    Keywords

    Public goods; 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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