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Selective Exposure Reduces Voluntary Contributions: Experimental Evidence from the German Internet Panel

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"This paper uses laboratory evidence from public goods games to examine how in payoff-equivalent situations, decision makers contribute toward private or public goods when they are exposed to different kinds of risks and uncertainties in the provision of these goods. We find that location matters with subjects moving away from the environmental uncertainty in favor of strategic uncertainty when that uncertainty is located on the private good. When the uncertainty relates to the public good, subjects face both kinds of uncertainties on the same good, leading to a significant drop in contributions. An opportunity to reduce uncertainty increases cooperation. "("JEL "C90, D81, H41) Copyright (c) 2008 Western Economic Association International.
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This paper reports the results of an experimental study which introduces an endogenous probability of public good provision into the voluntary contributions mechanism. Specifically, the two treatments allow for nonprovision even with positive contributions. In one treatment, the provision probability rises with increased contributions (while preserving the dominant strategy equilibrium of zero contributions). The results show that uncertainty per se lowers individual but not group contributions, lagged marginal incentives significantly predict contributions, and individuals significantly react to own-deviations from average group contributions. This has implications for work teams or professional sports teams who see increased probability of group rewards given higher effort levels.
and SFB 884 Political Economy of Reforms
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884 Political Economy of Reforms
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Political Economy of Reforms
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