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The Experimetrics of Public Goods: Inferring Motivations from Contributions

Author

Listed:
  • Nicholas Bardsley

    (CeDEx, School of Economics, University of Nottingham)

  • Peter Moffatt

    (School of Economics, University of East Anglia)

Abstract

In public goods experiments, stochastic choice, censoring, and motivational heterogeneity allow experimentalists to differ over the extent of unselfishness, and whether it is reciprocal or altruistic. These problems are addressed econometrically by estimating a finite mixture model to isolate types, incorporating the two-limit Tobit model with tremble to accommodate censoring and errors. Most subjects act selfishly, but a substantial proportion are reciprocal with altruism playing only a marginal role. Isolating reciprocators enables a test of Sugden’s model of voluntary contributions, which is rejected because they display a selfserving bias.

Suggested Citation

  • Nicholas Bardsley & Peter Moffatt, 2005. "The Experimetrics of Public Goods: Inferring Motivations from Contributions," Discussion Papers 2005-09, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2005-09
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    References listed on IDEAS

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    More about this item

    Keywords

    voluntary contributions; reciprocity; altruism; tobit; finite mixture models; trembles;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H4 - Public Economics - - Publicly Provided Goods

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