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All it takes is one: The effect of weakest-link and summation aggregation on public good provision under threshold uncertainty

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  • Carlsson, Fredrik

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Ek, Claes

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Lange, Andreas

    (University of Hamburg)

Abstract

We report experimental evidence on the voluntary provision of public goods under threshold uncertainty. By explicitly comparing two prominent technologies, summation and weakest link, we show that uncertainty 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 non-binding pledges as one mechanism to improve chances of threshold attainment under both technologies, yet in particular under weakest link.

Suggested Citation

  • Carlsson, Fredrik & Ek, Claes & Lange, Andreas, 2021. "All it takes is one: The effect of weakest-link and summation aggregation on public good provision under threshold uncertainty," Working Papers in Economics 813, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0813
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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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