Entry or exit? The effect of voluntary participation on cooperation

Arbeitspapier

We study the effects of voluntary participation on public good provision. Voluntary participation may foster cooperation through two mechanisms: an entry mechanism, which leads to assortative selection of interaction partners, or an exit mechanism, whereby the opportunity to leave the partnership can be used as a means to resist exploitation by free-riders. We examine the relative effectiveness of these two mechanisms in a one-shot, two-person public goods game experiment. We find that voluntary participation has a positive effect on public good provision through the exit mechanism, but we do not find evidence of a positive effect of entry. Assortative selection of interaction partners seems to play a minor role in our setting, whereas the threat of costly exit is a powerful force to discipline free-riding.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CeDEx Discussion Paper Series ; No. 2015-04

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Institutions: Design, Formation, Operations, and Impact ; Public Goods
• Subject: public goods ; cooperation ; voluntary participation ; exit ; entry ; experiment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nosenzo, Daniele ; Tufano, Fabio
• Event: Veröffentlichung
• (who): The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
• (where): Nottingham
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/129833
• Last update: 10.03.2025, 11:42 AM CET