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Killing the (coordination) moment: How ambiguity eliminates the restart effect in voluntary contribution mechanism experiments

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  • Norton, Douglas A.

Abstract

The restart effect occurs in linear voluntary contribution mechanism (VCM) experiments when there is an upward pulse in contributions to the group account following a stoppage and then restarting of the VCM experiment. Although the restart effect is a well-known empirical regularity little research has been conducted regarding its causes. However, other scholars have noted that some kind of revision takes place during the stoppage that promotes cooperation. This research posits that certain common knowledge about when the stoppage occurs creates a “coordination moment” where group members simultaneously engage in revision and attempt to re-coordinate on a higher contribution level. Following Schelling’s description that such coordination comes from focal points that are both “prominent and conspicuous” I design a VCM experiment that reproduces the standard restart result and then compares those sessions to sessions where the exact pattern of stoppages is unknown. I find that this subtle manipulation of ambiguity (over the when stoppages will happen) eliminates the restart effect.

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  • Norton, Douglas A., 2015. "Killing the (coordination) moment: How ambiguity eliminates the restart effect in voluntary contribution mechanism experiments," Economics Letters, Elsevier, vol. 126(C), pages 1-5.
    • Handle: RePEc:eee:ecolet:v:126:y:2015:i:c:p:1-5
    DOI: 10.1016/j.econlet.2014.09.037
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    Cited by:

    1. Lugovskyy, Volodymyr & Puzzello, Daniela & Sorensen, Andrea & Walker, James & Williams, Arlington, 2017. "An experimental study of finitely and infinitely repeated linear public goods games," Games and Economic Behavior, Elsevier, vol. 102(C), pages 286-302.
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    3. Mathieu Lefebvre & Anne Stenger, 2020. "Short- & long-term effects of monetary and non-monetary incentives to cooperate in public good games: An experiment," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-17, January.
    4. Ashley Harrell, 2019. "Group leaders establish cooperative norms that persist in subsequent interactions," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-19, September.

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    More about this item

    Keywords

    Public goods; Restart effect; Focal point; Coordination;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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