scholarly journals Walk the Talk? The Effect of Voting and Excludability in Public Goods Experiments

2010 ◽  
Vol 2010 ◽  
pp. 1-15 ◽  
Author(s):  
Hans J. Czap ◽  
Natalia V. Czap ◽  
Esmail Bonakdarian
Keyword(s):  
Public Goods ◽  
Public Good ◽  
Driving Forces ◽  
Public Project ◽  
The Public ◽  
Public Projects ◽  
Individual Contributions ◽  
The Individual ◽  
Other Regarding

The purpose of this paper is to investigate the effect of voting and excludability on individual contributions to group projects. We conducted two experiments on excludable and nonexcludable public goods, which provided several important results. First, contrary to our expectations, subjects are generally contributing more to the non-excludable compared to the excludable public good. Second, participating in a vote to choose a public project per se makes no difference in contributions. However, if the project that the individual voted for also gets selected by the group, they contribute significantly more to that project. Third, empathy and locus of control are important driving forces of participation in common projects. Our results have implications on the procedural design of obtaining funding for public projects. First, the public should get involved and have a say in the determination of which project should be realized. Second, it might well pay off to attempt to develop a consensus among the population and obtain near unanimous votes, because in our experiment, subjects discriminate between the project they voted for and the project chosen by the majority. Third, the policy proposers should stress the other-regarding interest of the public good rather than just pecuniary incentives.

Going Far by Going Together: James M. Buchanan’s Economics of Shared Ethics

2021 ◽  
pp. 1-15
Author(s):  
Art Carden ◽  
Gregory W. Caskey ◽  
Zachary B. Kessler
Keyword(s):  
Business Ethics ◽  
Economic Analysis ◽  
Public Good ◽  
Public Capital ◽  
The Public ◽  
Economic Progress ◽  
The Individual ◽  
Other Regarding ◽  
Ethical Communication ◽  
Other Regarding Preferences

We explore themes in Nobel Prize–winning economist James M. Buchanan’s work and apply his Ethics and Economic Progress to problems facing individuals and firms. We focus on Buchanan’s analysis of the individual work ethic, his exhortations to “pay the preacher” of the “institutions of moral-ethical communication,” and his notion of law as “public capital.” We highlight several ways people with other-regarding preferences can contribute to social flourishing and some of the ways those who have “affected to trade for the public good” might want to redirect their efforts. We show how Buchanan’s work has considerable implications for business ethics. Just as his economic analysis of politics changed how we understand government, we think his economic analysis of ethics can (and should) change how we understand business.

The Source and Significance of Confusion in Public Goods Experiments

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Paul J Ferraro ◽  
Christian A Vossler
Keyword(s):  
Public Goods ◽  
Public Good ◽  
Institutional Design ◽  
Game Form ◽  
The Public ◽  
Public Goods Experiments ◽  
Experimental Parameters ◽  
Other Regarding ◽  
Other Regarding Preferences ◽  
Design Experiments

Abstract Economists use public goods experiments to develop and test theories of individual preferences and institutional design. Previous work demonstrates many participants in public goods experiments contribute to the public good out of confusion. We design experiments to provide insights on the consequences and causes of confusion. We establish that confusion amounts to more than statistical noise and does not dissipate with repetition (i.e. learning). Confused subjects use experimental parameters and the behavior of other players as cues, which confounds treatment effects and traditional strategies to identify other-regarding preferences through exogenous parameter changes and the modeling of reactions to other subjects’ decisions. We argue that confusion stems from an inaccurate understanding of game incentives (“failure of game form recognition”), which is a consequence of the framing and inadequate payoff information in standard instructions. Modified instructions can substantially reduce confusion, and, in turn, change the distribution of contributions to the public good.

scholarly journals The Non-Tragedy of the Non-Linear Commons

2020 ◽  
Author(s):  
Marco Archetti ◽  
István Scheuring ◽  
Douglas Yu
Keyword(s):  
Spatial Structure ◽  
Public Goods ◽  
Public Good ◽  
Social Interactions ◽  
Empirical Evidence ◽  
The Public ◽  
Free Riders ◽  
Individual Contributions ◽  
The Commons ◽  
Biological Hierarchy

Public goods are produced at all levels of the biological hierarchy, from the secretion of diffusible molecules by cells to social interactions in humans. However, the cooperation needed to produce public goods is vulnerable to exploitation by free-riders — the Tragedy of the Commons. The dominant solution to this problem of collective action is that some form of positive assortment (due to kinship or spatial structure) or of enforcement (reward and punishment) is necessary for public-goods cooperation to evolve. However, these solutions are only needed when individual contributions to the public good accrue linearly, and the assumption of linearity is never true in biology. We explain how cooperation for nonlinearpublic goods is maintained endogenously and does not require positive assortment or enforcement, and we review the considerable empirical evidence for the existence and maintenance of nonlinear public goods in biology. We argue that it is time to move beyond discussions about assortment and enforcement in the study of cooperation in biology.

scholarly journals Experimental Economics Applied in the Classroom: Engaging Students in Active Learning

1996 ◽  
Vol 1 (2) ◽  
pp. 162-165
Author(s):  
Thomas R. McKinnon
Keyword(s):  
Active Learning ◽  
Public Goods ◽  
Experimental Economics ◽  
Equilibrium Price ◽  
The Public ◽  
Free Rider Problem ◽  
Individual Contributions ◽  
The Individual ◽  
Simulated Market

Experimental economics was developed originally for research purposes, but was found to enhance the learning of students engaging in the experiments. This outcome is consistent with learning theory that suggests that active learning is more effective in achieving long-term cognitive gains. Two experiments that actively engage students are described. In the first experiment, students participate in a double oral auction. Each students is given a card directing him to buy or sell a fictional commodity at a price below a maximum for buyers or above a minimum for sellers. Students then interact in a simulated market seeking to complete a transaction. Deals are recorded and the data are used to construct demand, supply, and equilibrium price. Understanding of how markets work results. A second experiment focuses on the free-rider problem of public goods. Students allocate a given fund between a public good for which the return is equally divided and a private good in which all the return goes to the individual. Contributions to the public diminish in successive rounds of allocation even though the percentage return on it is greater. The necessity of taxes to support public goods becomes apparent.

Ethnic trust, minority status, and public goods in post-conflict societies

2021 ◽  
pp. 002234332098421
Author(s):  
Sam Whitt
Keyword(s):  
Public Goods ◽  
Public Good ◽  
Intergroup Contact ◽  
Minority Group ◽  
Civil Liberties ◽  
Minority Status ◽  
The Public ◽  
Attitudes And Behaviors ◽  
Post Conflict ◽  
History Of

This study considers how ethnic trust and minority status can impact the ability of ethnic groups to pursue cooperative public goods, focusing on groups with a history of conflict and lingering hostility. A public good experiment between ethnic Albanians and Serbs in postwar Kosovo reveals that subjects contribute far more to a mutually beneficial public good when they are part of an experimentally induced coethnic majority. However, when in the minority, subjects not only underinvest, but many actively divest entirely, privatizing the public good. Majority/minority status also has wide-ranging implications for how individuals relate to real-world public goods and the institutions of government that provide them. Compared to majority Albanians, survey data indicate how minority Serbs in Kosovo express greater safety and security concerns, feel more politically, socially, and economically excluded, are more dissatisfied with civil liberties and human rights protections, and are less likely to participate politically or pay taxes to support public goods. Conflict-related victimization and distrust of out-groups are strong predictors of these minority group attitudes and behaviors. This suggests a mechanism for how conflict amplifies out-group distrust, increasing parochial bias in public good commitments, especially among minorities who are wary of exploitation at the hands of an out-group majority. To restore trust, this study finds that institutional trust and intergroup contact are important to bridging ethnic divides that inhibit public good cooperation.

A Case for Private Provision but Collective Ownership of Public Goods

1998 ◽  
Vol 42 (1) ◽  
pp. 90-94 ◽  
Author(s):  
William D. Gerdes
Keyword(s):  
Public Goods ◽  
Public Good ◽  
Private Provision ◽  
The Public ◽  
Collective Ownership ◽  
Free Ride ◽  
Voluntary Exchange

One strategy for generating Pareto results in a public good model is to create an environment where traders internalize the public good externality. The model presented here accomplishes this by separating the provision and ownership of public goods. Such goods are privately provided but collectively owned. Under this arrangement, Lindahl prices are generated through the voluntary exchange activities of consumers. Persistent attempts to free ride are not consistent with maximizing behavior which leads to internalization.

scholarly journals A public goods model of outcomes from online knowledge sharing mediated by mental model processing

2019 ◽  
Vol 23 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Ronald E. Rice ◽  
Marni Heinz ◽  
Ward van Zoonen
Keyword(s):  
Public Goods ◽  
Knowledge Sharing ◽  
Public Good ◽  
Mental Model ◽  
Structural Equation ◽  
Equation Modeling ◽  
Costs And Benefits ◽  
Learning Potential ◽  
Content Type ◽  
The Individual

Purpose This study aims to take a public goods approach to understand relationships between collecting and contributing knowledge to an online knowledge sharing portal (KSP), mental model processing and outcomes at the individual and collective levels. Design/methodology/approach This study reports on a survey (N = 602) among tax professionals, examining the perceived individual and collective benefits and costs associated with collecting and contributing knowledge. Hypotheses were tested using structural equation modeling. Findings Collecting and contributing knowledge led to considerable mental model processing of the knowledge. That in turn significantly influenced (primarily) individual and (some) collective costs and benefits. Results varied by the kinds of knowledge sharing. Whether directly from knowledge sharing, or mediated through mental modeling, the perceived costs and benefits may be internalized as an individual good rather than being interpreted at the collective level as a public good. Research limitations/implications The study is situated in the early stages of a wiki-type online KSP. A focus on the learning potential of the system could serve to draw in new users and contributors, heightening perceptions of the public goods dimension of a KSP. Practical implications A focus on the learning potential of the system could serve to draw in new users, and thus the number of subsequent contributors, heightening perceptions of the collective, public goods dimension of a KSP. Originality/value This study explores how knowledge sharing and mental model processing are directly and indirectly associated with individual and collective costs and benefits. As online knowledge sharing is both an individual and public good, costs and benefits must be considered from both perspectives.

The Distributional Impact of Public Goods

1980 ◽  
Vol 8 (4) ◽  
pp. 397-426 ◽  
Author(s):  
Richard D. Raymond ◽  
Michael Sesnowitz
Keyword(s):  
Public Goods ◽  
Low Income ◽  
Metropolitan Region ◽  
Public Project ◽  
Public Projects ◽  
Impure Public Goods ◽  
Pure Public Good ◽  
Net Benefits ◽  
Low Income Families ◽  
Distributional Impact

Aspects of the method developed by Aaron and McGuire and Maital (AMM) for estimating the benefit distributions associated with the provision of pure public goods are clarified and the method is extended to cover the case of public projects designed to improve the quality of impure public goods. The extended method is used to estimate the distributional impact of a proposed public project in the Cleveland-Akron metropolitan region, and the results are compared with estimates obtained from three naive models and from the AMM model for pure public goods. It is found that the native models overestimate substantially the net benefits received by low-income families and underestimate the net benefits received by high-income families. Using the AMM method for a pure public good similarly distorts the results, though by a much smaller magnitude.

Public Involvement in the Design of Public Projects

2019 ◽  
Vol 44 (4) ◽  
pp. 73-79
Author(s):  
Emad S. Mushtaha ◽  
Omar Hassan Omar ◽  
Dua S. Barakat ◽  
Hessa Al-Jarwan ◽  
Dima Abdulrahman ◽  
...  
Keyword(s):  
Decision Making ◽  
Design Process ◽  
Public Involvement ◽  
Decision Making Process ◽  
Quantitative Methodology ◽  
Public Project ◽  
The Public ◽  
Public Projects ◽  
Novel Approach ◽  
Building Program

The involvement of the public in the decision-making process is essential, especially in the early stages of a design process. This study aims to achieve the development of an architectural program for a memorial public project, using the outcomes of the Analytical Hierarchy Process (AHP) based on public opinion. It employs a novel approach that sharply focuses on public involvement in the design process, using a quantitative methodology for the development of a suitable building program and selecting a memorial form that meets the public's needs in a practical way. The study drew on data from various memorial projects to identify possible spaces and their selection criteria. A written questionnaire was distributed to a sample of 105 members of the public, to narrow down the number of spaces according to public response. Then, a hearing (spoken) questionnaire was conducted on a sample of 20 to produce the program for development by generating the most strongly preferred form of memorial. The results contradicted the existing norm for a memorial as a sculpture; it was revealed that most of the public preferred memorial landscapes to buildings and great structures. The study concluded that AHP could be used to further involve the relevant stakeholders in the decision-making process of the design of a public project.

Basic Income as a Human Right?

2019 ◽  
pp. 541-552
Author(s):  
Daniel J. Hemel
Keyword(s):  
Human Rights ◽  
Public Goods ◽  
The State ◽  
Human Being ◽  
Basic Income ◽  
Human Right ◽  
Global Commons ◽  
The Public ◽  
The Individual ◽  
The Relationship

This chapter suggests a human rights–based justification for national basic income schemes, contrasting it with justifications based on welfarist principles or notions of entitlement to a share of the global commons. Starting from the premise that a state is a collective enterprise that generates a surplus, it contends that any human being who is an “obedient” member of that state has a right to some share of the surplus. That right—which arises from the relationship between the individual and the state, and is independent of need—could justify the entitlement to a basic income. Such income should be provided in cash, not in kind, because the latter risks depriving the individual of the enjoyment of his share of the surplus—in effect, forcing him to forfeit or transfer it to others if he does not use the public goods or services provided by the state.

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