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One bad apple spoils the barrel? Public good provision under threshold uncertainty

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Listed:
  • Fredrik Carlsson

    (University of Gothenburg)

  • Claes Ek

    (University of Gothenburg)

  • Andreas Lange

    (University of Hamburg)

Abstract

We report laboratory evidence on the voluntary provision of threshold public goods when the exact location of the threshold is not known. Our experimental treatments explicitly compare two prominent technologies, summation, and weakest link. Uncertainty in threshold location is particularly detrimental to threshold attainment under weakest link, where low contributions by one subject cannot be compensated by others. In contrast, threshold uncertainty does not affect contributions under summation. We demonstrate that non-binding pledges improve the chances of threshold attainment under both technologies, particularly under weakest link.

Suggested Citation

  • Fredrik Carlsson & Claes Ek & Andreas Lange, 2024. "One bad apple spoils the barrel? Public good provision under threshold uncertainty," Experimental Economics, Springer;Economic Science Association, vol. 27(3), pages 664-686, July.
    • Handle: RePEc:kap:expeco:v:27:y:2024:i:3:d:10.1007_s10683-024-09836-y
    DOI: 10.1007/s10683-024-09836-y
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    More about this item

    Keywords

    Public goods; Threshold uncertainty; Weakest link; Coordination; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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