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Confusion and Learning in the Voluntary Contributions Game

Author

Listed:
  • Ralph-C Bayer

    (School of Economics, University of Adelaide)

  • Elke Renner

    (School of Economics, University of Nottingham)

  • Rupert Sausbruber

    (Department of Economics & Statistics, University of Innsbruck)

Abstract
We use a limited information environment to assess the role of confusion in the repeated voluntary contributions game. A comparison with play in a standard version of the game suggests, that the common claim that decision errors due to confused subjects biases estimates of cooperation upwards, is not necessarily correct. Furthermore, we find that simple learning cannot generate the kind of contribution dynamics commonly attributed to the existence of conditional cooperators. We conclude that cooperative behavior and its decay observed in public goods games is not a pure artefact of confusion and learning.

Suggested Citation

  • Ralph-C Bayer & Elke Renner & Rupert Sausbruber, 2012. "Confusion and Learning in the Voluntary Contributions Game," Discussion Papers 2012-18, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2012-18
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    More about this item

    Keywords

    voluntary contribution mechanism; public goods experiments; learning; limited information; confusion; conditional cooperation;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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