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Public goods and bads with vulnerable individuals: How information and social nudges change behaviour

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  • Anna Lou Abatayo
  • Tongzhe Li

Abstract

In a diverse society, heterogeneous returns to public goods (PG) and public bads (PB) are more often the rule rather than the exception, and often the returns from the public pool are such that individuals who are most affected no longer have incentives to free ride on others. We consider this set‐up through a laboratory experiment and investigate how heterogeneity of marginal per capita returns (MPCRs) affect economic cooperation in both PG and PB games. We also examine whether information on heterogeneity—no information, information and information with a plea to help those who are most affected by the public pool—changes cooperation. Our results show that information regarding the heterogeneity does not change individual behaviour in both PG and PB games. However, a social plea to help individuals with MPCRs of 1.20 increases average group efficiency. Average individual contributions under the social plea treatment are either maintained or increased. Those with MPCRs of 1.20 are more cooperative than their counterparts but not as completely as theoretically predicted. The exact same individual is also more cooperative under a PG game than under a PB game; a result that remains unchanged whether MPCRs are homogeneous or heterogeneous. Biens et maux publics avec des personnes vulnérables : effets de l'information et des incitatifs sociaux sur le comportement. Dans une société diversifiée, les rendements hétérogènes concernant les biens et les maux publics sont plus souvent la règle que l'exception, et fréquemment, le rendement des ressources partagées est tel que les personnes les plus touchées n'ont plus d'incitatifs pour profiter des autres. Nous considérons cette configuration dans le cadre d'une expérience en laboratoire et étudions la répercussion de l'hétérogénéité des rendements marginaux par personne sur la coopération économique dans les jeux de bien et de mal publics. Nous examinons également l'influence de l'information sur l'hétérogénéité ‐ aucune information, information, information accompagnée d'un appel à aider les personnes les plus touchées par la ressource partagée ‐ sur la coopération. Nos résultats démontrent que l'information sur l'hétérogénéité ne modifie pas le comportement individuel dans les jeux de bien et de mal publics. Toutefois, un appel social à aider les personnes, incluant un rendement marginal par personne de 1,20, augmente l'efficience collective moyenne. Les contributions individuelles moyennes dans le cadre du traitement de l'appel social sont soit maintenues, soit accrues. Les personnes ayant un rendement marginal par personne de 1,20 sont plus coopératives que leurs homologues, mais pas autant que ce que prédit la théorie. La même personne est également plus coopérative lors d'un jeu de bien public que d'un jeu de mal public, un résultat qui ne change pas si les rendements marginaux par personne sont homogènes ou hétérogènes.

Suggested Citation

  • Anna Lou Abatayo & Tongzhe Li, 2024. "Public goods and bads with vulnerable individuals: How information and social nudges change behaviour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(2), pages 556-587, May.
  • Handle: RePEc:wly:canjec:v:57:y:2024:i:2:p:556-587
    DOI: 10.1111/caje.12713
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