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The effect of heterogeneity and risk on co-operation: Experimental evidence

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Banerjee,  Abhirup
Potsdam Institute for Climate Impact Research;

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Zitation

Banerjee, A. (2024): The effect of heterogeneity and risk on co-operation: Experimental evidence. - Journal of Behavioral and Experimental Economics, 109, 102165.
https://doi.org/10.1016/j.socec.2024.102165


Zitierlink: https://publications.pik-potsdam.de/pubman/item/item_30412
Zusammenfassung
Using data from a laboratory experiment, I study how co-operation is affected when the benefit from the public good is risky (uncertain) and heterogeneous amongst members of a group. I investigate whether heterogeneity in benefits affects contributions differently under certainty and uncertainty, and whether the distribution of risk within the group affects contribution behavior. I find that heterogeneity in benefits affects contributions less under uncertainty as compared to certainty and that the distribution of risk within the group has no significant effect on co-operative behavior, but these results do not hold once we control for conditional contributions.