Arbeitspapier

Public goods provision and sanctioning in privileged groups

In public good provision, privileged groups enjoy the advantage that some of its members find it optimal to supply a positive amount of the public good. However, their inherent asymmetric nature may make the enforcement of cooperative behavior through informal sanctioning harder to accomplish. In this paper we experimentally investigate public good provision in normal and privileged groups with and without decentralized punishment. We find that compared to normal groups, privileged groups are relatively ineffective in using costly sanctions to increase everyone's contributions. Punishment is less targeted towards strong free-riders and they exhibit a weaker increase in contributions after being punished. Thus, we show that privileged groups are not as privileged as they initially seem.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 2063

Classification
Wirtschaft
Public Goods
Microeconomic Behavior: Underlying Principles
Design of Experiments: Laboratory, Group Behavior
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
Subject
Öffentliches Gut
Trittbrettfahrerverhalten
Informelle Gruppe
Theorie

Event
Geistige Schöpfung
(who)
Reuben, Ernesto
Riedl, Arno
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2007

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Reuben, Ernesto
  • Riedl, Arno
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2007

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