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“One man’s meat is another man’s poison.” An experimental study of voluntarily providing public projects that raise mixed feelings.
Abgebildete Person

Güth, Werner

Koukoumelis, Anastasios

Levati, M. Vittoria

Erschienen
29. Juli 2011
Nummer des Discussion-Papers

2011-034

Schlagwort(e)

Bidding behavior

Procedural fairness

Public project

Zusammenfsg.

We compare, on the basis of a procedurally fair "provision point" mechanism, bids for a public project from which some gain and some lose with bids for a less efficient public project from which all gain. In the main treatment, participants independently decide which one, if any, of the public projects should be implemented. We also run control treatments where only one of the two projects can be implemented. We find that (a) mixed feelings per se do not affect bidding behavior, and (b) the provision frequency of the project that raises mixed feelings declines significantly when it faces competition from the public good.

article pub. typess JER
Research article
article languages JER
Englisch
JEL-Classification for JER
C72 - Noncooperative Games ; C92 - Laboratory, Group Behavior ; D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; H44 - Publicly Provided Goods: Mixed Markets