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This paper extends existing national and regional estimates of Cooprative Extension staffing and funding levels through 2024 and describes changes in Extension program priorities. From a peak of 17,694 professional staff working in Extension nation-wide in 1979, we estimate this declined to 13,188 by 2024. Funding sources for Extension became more diversified over time, relying less on Federal (especially formula) funds and more on State and non-government sources. Program content shifted along with funding sources, with a declining share of Extension resources devoted to agriculture, although with significant differences across States and regions.
Legitimizing property rights over the resources that participants use in dictator and ultimatum games has been shown to significantly alter behavior. However, a similar impact has not been observed in public good experiments. We employ an interior public good design with thirty periods of peer punishment, which allows groups to choose between plausible contribution norms without conflicting with efficiency. Across our Unearned and Earned treatments, endowments are randomly allocated or earned through a real effort task. In Unearned, both High and Low types adhere to a norm of contributing an equal proportion of one’s endowment. In contrast, in Earned, only Low types adhere to the proportional contribution norm, while High types contribute less than an equal proportion. Notably, deviations from the proportional contribution by High types are punished significantly less in Earned, suggesting a greater tolerance to such deviations when property rights are earned.
We design an experiment to study the implications of introducing position uncertainty in a social dilemma where eight players decide to contribute to a public good sequentially. Contributions are significantly higher when players make sequential decisions to contribute or not, are uncertain about their position in the sequence, and observe a sample of their predecessors’ choices compared to the simultaneous-move game. Yet, contribution rates remain invariant to the number of agents sampled. Consequently, contributions don’t unravel even with position certainty, and there is no incremental benefit of introducing position uncertainty, contrary to the theoretical prediction. Furthermore, controlling for the sum of contributions observed, individuals contribute less the later in the sequence they are.
This paper is a single-project meta-analysis of four experiments that model charitable giving as individual contributions to a multiplicity of competing threshold public goods. We pool 17,136 observations at the individual level to summarize the project and investigate the role of learning, gender, and risk attitude, since the included studies are inconclusive in this regard. We find that equally effective coordination devices are the existence of a single contribution option that stands out on its merits, learning, and delegation as long as the intermediary is formally obliged to pass along a high enough percentage of the transferred resources. Women delegate less than men, and consequently prefer direct contributions. Risk tolerance increases overall donations but decreases individual earnings. We discuss possible implications of our findings.
This paper studies the dynamic extraction problem of an exhaustible common-pool resource. We build on classical closed-economy growth models with intertemporally maximizing, infinitely lived dynasties exhibiting a constant population growth rate. Utility is obtained from periodic consumption based on the fixed-rate capital and the extraction of the resource, and from the amenity values derived from the standing resource stock. The resource contributes to both consumptive and amenity utilities, while different generations are interconnected by intergenerational altruism. Dynamic allocation of the natural resource is determined by a benevolent social planner. This allows us to examine intra-generational inequity issues in combination with the intergenerational concerns. We demonstrate how the optimal allocation of the resource depends on the population growth, wealth level, inequality, ecological vulnerability of the resource and rivalry on the amenity value. Our results highlight the trade-offs between reducing the degree of inequality and preserving the ecological values of the resource.
In a perfect market economy, the cost of raising another euro of tax revenue equals one. However, once distortionary taxes on goods and factors are introduced, the marginal cost of public funds, MCPF, typically deviates from one. Often it exceeds one, but one can also find cases where it falls short of one. This Element introduces the concept of the MCPF, sketches its history, and discusses a number of applications. It does this by undertaking economic evaluations of public sector projects involving a pure public good. An important distinction in the literature relates to where the government has access to lump-sum taxation versus where it must rely on changing a distortionary tax. These are often unit taxes or proportional taxes. Sometimes they are even introduced to alleviate a problem. An example is a tax on emissions of greenhouse gases. This title is also available as Open Access on Cambridge Core.
Volunteering is a widespread allocation mechanism in the workplace. It emerges naturally in software development or the generation of online knowledge platforms. Using a field experiment with more than 2,000 workers, we study the effect of team size on volunteering in an online labor market. In contrast to our theoretical predictions and previous research, we find no effect of team size on volunteering, although workers react to free-riding incentives, and volunteering is perceived as costly. Eliciting workers’ beliefs about their co-workers’ volunteering reveals conditional volunteering as the primary driver of our results: Workers tend to volunteer more when they believe that others are volunteering, even when doing so is highly inefficient. Using additional experiments, we identify the importance of the task itself as an essential mitigating factor for those results.
A growing number of studies use “real” effort designs for laboratory experiments where subjects complete an actual task to exert effort rather than using a stylized effort design where subjects simply choose an effort level from a predefined set. The commonly argued reason for real effort is that it makes the results more generalizable and field relevant. We investigate the nature of modeling effort provision by first trying to provide a clear theoretical understanding of the nature of effort costs. We then empirically examine claims about the differences between real effort and stylized effort. A key to our examination is ensuring that we compare the two modes of effort provision keeping effort costs constant, which is a point overlooked in many past examinations. In our data, when controlling for effort costs, we find no differences in behavior between real and stylized effort. Given the importance of effort costs and the lack of a generally accepted way to include them in real effort designs, we provide a simple add-on that any researcher can use with their real effort experiments to incorporate a theoretically appropriate and controlled cost of effort even in a real effort setting. We also discuss ways to better approach modeling effort costs in experiments, whether one is conducting real or stylized designs, to improve inference on research questions.
Using public goods games in a laboratory setting, we study team-level production, where two teams compete for the resources of a common-member who can benefit from and provide effort in both teams. Intrinsically, the common-member faces divided loyalties. We examine such competition in a setting in which the common-member has productive abilities equal to that of the other team members (dedicated-members), and in two settings where he/she has greater relative potential. When effort (contributions) by the common-member have greater productivity (coupled with higher opportunity costs to contribute) in providing the public good relative to that of dedicated-members, we find team performance is not significantly increased. On the other hand, when the common-member has a greater endowment, sufficient to match the absolute contributions of team members in both teams, there is a significant increase in team performance. The evidence suggests that a norm of reciprocity by dedicated-members based on absolute contributions of the common-member better explains behavior than a norm based on the value added of the common-member's contributions. This behavior, along with fairness norms elicited in a survey, suggests that on average dedicated members do not sufficiently incorporate the common-members' higher opportunity costs in the treatment where his/her productivity is increased. This setting provides an important illustration of where the behavioral response to the type of inequality matters, leading to differences in team efficiency.
In this paper, I discuss dual collective action problems in which a resource pool has simultaneous common pool and public good aspects in its usage, such as hunting (consumption) and conservation of wildlife. I then implement laboratory experiments to evaluate how spillovers between the two related uses of nature affect the consumption and conservation habits of stakeholders. The Nash predictions suggest that even the most selfish of profit-maximizing agents have an incentive to provide equally towards resource consumption and conservation when resource spillovers are present. Results from laboratory experiments are consistent with this hypothesis. As a policy intervention, I introduced and later revoked a common pool licensing policy based on U.S. hunting and fishing licensing. Under the same theoretical framework, removing a common pool licensing policy would increase welfare for all resource stakeholders. Contrary to this, experimental evidence indicates no overall change in welfare.
This paper compares contributions to an experimental public good across the United States and Czech Republic, using a design that allows us to distinguish between altruism and decision error. Czech subjects contribute significantly more than American subjects, and further analysis reveals that this result cannot be attributed to the confounding effects of gender or decision error. Instead, preferences for altruism appear to differ across groups: Czechs are more altruistic than Americans and men are more altruistic than women.
This paper reports on the use of carrot (positive) and stick (negative) incentives as methods of increasing effort among members of work teams. We study teams of four members in a laboratory environment in which giving effort towards the team goal is simulated by eliciting voluntary contributions towards the provision of a public good. We test the efficiency-improving properties of four distinct environments: monetary prizes given to high contributors versus monetary fines assessed to low contributors, where high/low contributor is defined first in terms of absolute contributions and then in terms of contributions relative to abilities—which we call handicapping. Our results show that both carrot and stick can increase efficiency (i.e., contributions) levels by 10-28%. We find that handicapped incentives promise the highest efficiency levels, and when handicapping is not used penalties may be more effective than prizes. The implications for work teams and suggestions for practical implementation are discussed.
We explore the effect of fixed versus dynamic group membership on public good provision. In a novel experimental design, we modify the traditional voluntary contribution mechanism (VCM) by periodically replacing old members of a group with new members over time. Under this dynamic, overlapping generations matching protocol we find that average contributions experience significantly less decay over time relative to a traditional VCM environment with fixed group membership and a common termination date. These findings suggest that the traditional pattern of contribution and decay seen in many public goods experiments may not accurately reflect behavior in groups with changing membership, as is the case in many real-world environments.
We investigate the effects of centrality on cooperation in groups. Players with centrality keep a group together by having a pivotal position in a network. In some of our experimental treatments, players can vote to exclude others and prevent them from further participation in the group. We find that, in the presence of exclusion, central players contribute significantly less than others, and that this is tolerated by those others. Because of this tolerance, groups with centrality manage to maintain high levels of cooperation.
This paper introduces new experimental designs to examine how conditional cooperation and punishment behaviours respond to the full range of variation in the contributions of others. It is shown that contributions become significantly more selfish-biased as others contribute more unequally, while punishment increases both with decreasing contributions by the target player and increasing contributions by a third player. Low contributors who punish antisocially do not direct their punishment specifically toward high contributors, while their beliefs indicate that they expect to themselves be punished.
We explore by purely experimental means a heterogeneous agents scenario in experimental public goods games, assuming the existence of at least three types of player: free riders, cooperators, and reciprocators. We identify the various types by means of four classification methods, and then play the public goods game with homogeneous groups. We observe that (1) the average contribution level is enhanced in this setting; (2) the decay phenomenon is replicated in groups of ‘pure’ free riders, whereas in groups of cooperative and reciprocating players the contribution is high and fairly stable throughout the game.
We investigate the endogenous formation of sanctioning institutions supposed to improve efficiency in the voluntary provision of public goods. Our paper parallels Markussen et al. (Rev Econ Stud 81:301–324, 2014) in that our experimental subjects vote over formal versus informal sanctions, but it goes beyond that paper by endogenizing the formal sanction scheme. We find that self-determined formal sanctions schemes are popular and efficient when they carry no up-front cost, but as in Markussen et al. informal sanctions are more popular and efficient than formal sanctions when adopting the latter entails such a cost. Practice improves the performance of sanction schemes: they become more targeted and deterrent with learning. Voters’ characteristics, including their tendency to engage in perverse informal sanctioning, help to predict individual voting.
This paper examines how image concerns affect the way giving behavior responds to social information. Subjects in the laboratory decide first whether they wish to donate part of their earnings to a charity, and then, conditional on opting in, decide how much to donate. They receive information on the size of a previous donation either before or after opting in, which allows one to examine the effect of the social information on the extensive and intensive margins of giving separately, and thus distinguish self-image concerns from potential alternative mechanisms. Information on a large previous donation caused subjects to opt out, but when shown only after opt-in, the same information caused subjects to increase donation amounts and did not lead to $0 donations. As further evidence of the influence of image concerns, the reaction to the social information was found to be correlated with a preference for quietly exiting a dictator game, and with scoring high on neuroticism. The results have implications for the inferences we draw about donor motives and welfare based on changes in giving in response to social information.
Three effects of apparently superficial changes in presentation (“framing effects” in abroad sense), were replicated together in the same repeated linear public goods experiment with real financial incentives. First, 32 repetitions were presented as four phases of 8 repetitions with a break and results summary in between. Contribution levels decayed during each phase but then persistently returned to about 50% after each re-start. Second, subjects contributed more when the payoff function was decomposed in terms of a gift which is multiplied and distributed to the other players, rather than the equivalent public good from which everyone benefits. Third, subjects contributed more following a comprehension task which asks them to calculate the benefits to the group of various actions (the “We” frame), rather than the benefits to themselves (the “I” frame). These results suggest that aspects of presentation may have strong and replicable effects on experimental findings, even when care is taken to make the language and presentation of instructions as neutral as possible. Experimental economists should therefore give careful consideration to potential framing effects—or, better still, explicitly test for them—before making claims about the external validity of results.
This paper reports an experimental study of the public goods game in which contributions are not submitted all at once but incrementally as coordinated in real time by a clock. Individuals press a button as soon as the clock equals their willingness to contribute. By providing information about the point at which subjects stop further contributions we find evidence for conditionally cooperative behaviour: A subject's decision to stop contributing induces an immediate reaction of the other group members.