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Sequential versus simultaneous contributions to public goods: Experimental evidence

Author

Listed:
  • Simon Gaechter

    (University of Nottingham)

  • Daniele Nosenzo

    (University of Nottingham)

  • Elke Renner

    (University of Nottingham)

  • Martin Sefton

    (University of Nottingham)

Abstract
We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting (Varian, Journal of Public Economics, 1994). Our findings support the theoretical argument that sequential contributions result in lower overall provision than simultaneous contributions. However, the distribution of contributions is not as predicted: late contributors are sometimes willing to punish early low contributors by contributing less than their best response. This induces early contributors to contribute more than they otherwise would. A consequence of this is that we fail to observe a predicted first mover advantage.

Suggested Citation

  • Simon Gaechter & Daniele Nosenzo & Elke Renner & Martin Sefton, 2009. "Sequential versus simultaneous contributions to public goods: Experimental evidence," Discussion Papers 2009-07, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2009-07
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    Cited by:

    1. Raphaële Préget & Phu Nguyen-Van & Marc Willinger, 2016. "Who are the voluntary leaders? Experimental evidence from a sequential contribution game," Theory and Decision, Springer, vol. 81(4), pages 581-599, November.
    2. Russo, Giuseppe & Senatore, Luigi, 2012. "A note on contribution games with loss functions," Economics Letters, Elsevier, vol. 115(2), pages 211-214.
    3. Neugart, Michael & Richiardi, Matteo G., 2013. "Sequential teamwork in competitive environments: Theory and evidence from swimming data," European Economic Review, Elsevier, vol. 63(C), pages 186-205.
    4. Daniele Nosenzo & Martin Sefton, 2011. "Endogenous Move Structure and Voluntary Provision of Public Goods: Theory and Experiment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 721-754, October.
    5. Ludwig, Sandra & Strassmair, Christina, 2009. "An Experimental study on the information structure in teams," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 277, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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    More about this item

    Keywords

    Public Goods; Voluntary Contributions; Sequential Moves; Experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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