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Communication, Advice and Beliefs in an Experimental Public Goods Game

Author

Listed:
  • Ananish Chaudhuri
  • Pushkar Maitra
  • Susan Skeath

Abstract

We study the efficacy of horizontal versus vertical social learning processes in a public goods game. In one treatment, subjects about to play the game can make nonbinding common knowledge announcements about their intentions while, in another, subjects do not communicate directly with group members but receive common knowledge advice from the previous generation of players. A third treatment has subjects play with neither communication nor advice. We find that groups that engage in peer communication achieve much lower levels of contribution to the public good than do groups that receive advice. We attribute this finding in part to the fact that some subjects in the communication treatment opted to make no announcement during the communication phase of play.

Suggested Citation

  • Ananish Chaudhuri & Pushkar Maitra & Susan Skeath, 2006. "Communication, Advice and Beliefs in an Experimental Public Goods Game," Monash Economics Working Papers 05/06, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2006-05
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2006/0506chaudhurimaitraskeath.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Voluntary contributions mechanism; Advice; Communication; Beliefs; Experiments.;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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