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A simple mechanism for the efficient provision of public goods: experimental evidence


Falkinger, Josef; Fehr, Ernst; Gächter, Simon; Winter-Ebmer, Rudolf (2000). A simple mechanism for the efficient provision of public goods: experimental evidence. American Economic Review, 90(1):247-264.

Abstract

The author reports on a series of experiments designed to investigate the factor of incentive mechanisms in the case of private provisions of public goods. In the Control treatment, there was no mechanism so that subjects faced strong free-riding incentives. In the so-called Falkinger mechanism treatment, the author implemented the Falkinger mechanism. The studies explored the impact of the mechanism in different economic environments. Results showed that the proposed incentive mechanism is very promising. Section I of the paper introduces the mechanism to be examined. Section II discusses the experimental design. Empirical results are provided in Section III, and Section IV interprets these results followed by a summary.

The author reports on a series of experiments designed to investigate the factor of incentive mechanisms in the case of private provisions of public goods. In the Control treatment, there was no mechanism so that subjects faced strong free-riding incentives. In the so-called Falkinger mechanism treatment, the author implemented the Falkinger mechanism. The studies explored the impact of the mechanism in different economic environments. Results showed that the proposed incentive mechanism is very promising. Section I of the paper introduces the mechanism to be examined. Section II discusses the experimental design. Empirical results are provided in Section III, and Section IV interprets these results followed by a summary.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2000
Deposited On:11 Feb 2008 12:21
Last Modified:05 Apr 2016 12:17
Publisher:American Economic Association
ISSN:0002-8282
Additional Information:Copyright: American Economic Association
Publisher DOI:10.1257/aer.90.1.247
Official URL:http://www.jstor.org/stable/117291
Related URLs:http://www.jstor.org/stable/pdfplus/117291.pdf
Permanent URL: http://doi.org/10.5167/uzh-1221

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