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The effect of heterogeneity and risk on co-operation: Experimental evidence

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  • Banerjee, Anwesha

Abstract

Using data from a laboratory experiment, I study how co-operation is affected when the benefit from the public good is risky (uncertain) and heterogeneous amongst members of a group. I investigate whether heterogeneity in benefits affects contributions differently under certainty and uncertainty, and whether the distribution of risk within the group affects contribution behavior. I find that heterogeneity in benefits affects contributions less under uncertainty as compared to certainty and that the distribution of risk within the group has no significant effect on co-operative behavior, but these results do not hold once we control for conditional contributions.

Suggested Citation

  • Banerjee, Anwesha, 2024. "The effect of heterogeneity and risk on co-operation: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    • Handle: RePEc:eee:soceco:v:109:y:2024:i:c:s2214804324000053
    DOI: 10.1016/j.socec.2024.102165
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    More about this item

    Keywords

    Public goods; Uncertainty; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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