Asymmetric heterogeneities and the role of transfers in a public goods experiment

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Koessler, A.-K.; Müller, J.; Zitzelsberger, S.: Asymmetric heterogeneities and the role of transfers in a public goods experiment. In: European Economic Review 159 (2023), 104561. DOI: https://doi.org/10.1016/j.euroecorev.2023.104561

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Abstract: 
Previous experimental research has shown that cooperation is especially challenging in situations involving heterogeneous actors. Here, we investigate the effect of allowing unconditional transfers in a public goods game when actors differ asymmetrically in their endowments and productivity levels. Under this setup, full efficiency, in terms of highest maximum group payoff, can only be achieved with the full transfer of resources from the players with high endowment and low productivity to the players with high productivity but low endowment. We show that, in this setting, the availability of transfers enhances public good provision and cooperation. The voluntary transfer serves as a powerful cooperative signal, leading to high contribution rates among the recipients. However, if the transfer possibility is given but not used, cooperation erodes.
License of this version: CC BY-NC-ND 4.0 Unported
Document Type: Article
Publishing status: publishedVersion
Issue Date: 2023
Appears in Collections:Fakultät für Architektur und Landschaft

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pos. country downloads
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1 image of flag of Germany Germany 11 57.89%
2 image of flag of United States United States 2 10.53%
3 image of flag of Netherlands Netherlands 2 10.53%
4 image of flag of Indonesia Indonesia 2 10.53%
5 image of flag of Ireland Ireland 1 5.26%
6 image of flag of China China 1 5.26%

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