Liu, Jia; Sonntag, AxelORCID: https://orcid.org/0000-0002-2875-8759 and Zizzo, Daniel John (2022) Information defaults in repeated public good provision. Journal of Economic Behavior & Organization, 197, pp. 356-369. https://doi.org/10.1016/j.jebo.2022.03.001
Full text not available from this repository.Abstract
We study an unexplored type of defaults - information defaults - in a repeated public good provision setting. In our treatments, we vary the default of having or not having contribution information as well as whether the information comes with a positive, zero or negative financial incentive. We find that almost all subjects have the information when this is cost-free or financially beneficial, but around a third have the information even when this is costly. Moreover, a default of not having information leads to a slower unraveling of cooperation which is matched by the beliefs about others’ contributions in these treatments. We also find a secondary informational default effect, challenging previous findings on how defaults work: when the default is no information, subjects do not seek information more often, but they tend to believe that more other subjects seek information.
Item Type: | Article in Academic Journal |
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Keywords: | Information defaults, Public good, Value of information, Lab experiments |
Classification Codes (e.g. JEL): | C91, D83, H41 |
Research Units: | Behavioral Economics |
Date Deposited: | 31 Mar 2022 07:00 |
Last Modified: | 19 Sep 2024 08:54 |
DOI: | 10.1016/j.jebo.2022.03.001 |
ISSN: | 0167-2681 |
URI: | https://irihs.ihs.ac.at/id/eprint/6114 |