Is there a hidden cost of imposing a minimum contribution level for public good contributions?

Kocher, Martin G.
Martinsson, Peter
Persson, Emil
Wang, Xianghong
Dept. of Economics, University of Gothenburgsv
2016-04-05T14:44:18Z
2016-04-05T14:44:18Z
2016-04
JEL: C91, D03, D64.sv
We examine the effects of either exogenously imposing or endogenously letting subjects choose whether to impose minimum contribution levels (MCLs) in a linear public goods experiment using the strategy method. Our results on contribution levels to the public goods are fairly independent of how MCLs are imposed. We find that the main effect of an MCL on unconditional contributions is that it increases low contribution levels to the MCL imposed, while the effect of those contributing more than the MCL before its introduction depends on the size of the MCL. Unexpectedly, there is much more crowding out for a low MCL than for a relatively high MCL. However, the distribution of contribution types is stable across different MCLs.sv
22sv
1403-2465
http://hdl.handle.net/2077/42412
engsv
Working Papers in Economicssv
654sv
Cooperationsv
Chinasv
experimentsv
experimentsv
minimum levelsv
public goodsv
Is there a hidden cost of imposing a minimum contribution level for public good contributions?sv
Textsv
reportsv

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