Arbeitspapier

Delegation And Coordination With Multiple Threshold Public Goods: Experimental Evidence

When multiple charities, social programs and community projects simultaneously vie for funding, donors risk miscoordinating their contributions leading to an inefficient distribution of funding across projects. Community chests and other intermediary organizations facilitate coordination among donors and reduce such risks. We explore such considerations by extending the threshold public goods framework to allow donors to contribute to an intermediary rather than directly to the public goods. We experimentally study the effects of the intermediary on contributions and successful public good funding. Results show that delegation increases overall contributions and public good success, but only when the intermediary is formally committed to direct funding received from donors to socially beneficial goods. Without such a restriction, the presence of an intermediary is detrimental, resulting in lower contributions, a higher probability of miscoordination, and lower payoffs.

Language
Englisch

Bibliographic citation
Series: MUNI ECON Working Paper ; No. 2019-02

Classification
Wirtschaft
Design of Experiments: Laboratory, Individual
Design of Experiments: Laboratory, Group Behavior
Publicly Provided Goods: General
Public Goods
Nonprofit Institutions; NGOs; Social Entrepreneurship
Subject
delegation
threshold public goods
laboratory experiment
fundraising

Event
Geistige Schöpfung
(who)
Corazzini, Luca
Cotton, Christopher
Reggiani, Tommaso
Event
Veröffentlichung
(who)
Masaryk University, Faculty of Economics and Administration
(where)
Brno
(when)
2019

DOI
doi:10.5817/WP_MUNI_ECON_2019-02
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Corazzini, Luca
  • Cotton, Christopher
  • Reggiani, Tommaso
  • Masaryk University, Faculty of Economics and Administration

Time of origin

  • 2019

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