Asymmetric heterogeneities and the role of transfers in a public goods experiment

B-Tier
Journal: European Economic Review
Year: 2023
Volume: 159
Issue: C

Authors (3)

Koessler, Ann-Kathrin (Leibniz Universität Hannover, ...) Müller, Julia (not in RePEc) Zitzelsberger, Sonja (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Previous experimental research has shown that cooperation is especially challenging in situations involving heterogeneous actors. Here, we investigate the effect of allowing unconditional transfers in a public goods game when actors differ asymmetrically in their endowments and productivity levels. Under this setup, full efficiency, in terms of highest maximum group payoff, can only be achieved with the full transfer of resources from the players with high endowment and low productivity to the players with high productivity but low endowment. We show that, in this setting, the availability of transfers enhances public good provision and cooperation. The voluntary transfer serves as a powerful cooperative signal, leading to high contribution rates among the recipients. However, if the transfer possibility is given but not used, cooperation erodes.

Technical Details

RePEc Handle
repec:eee:eecrev:v:159:y:2023:i:c:s0014292123001897
Journal Field
General
Author Count
3
Added to Database
2026-01-25