Volunteering a Public Service: An Experimental Investigation

Marc Bilodeau, Indiana University - Purdue University at Indianapolis

Jason Childs, McMaster University

Stuart Mestelman, McMaster University

Draft of 17 April 2003

Abstract

In some public goods environments it may be advantageous for heterogeneous groups to be coordinated by a single individual who will bear private costs for acting as the leader while enabling each member of the group to achieve maximum potential gains.  This environment is modeled as a war of attrition in which everyone is tempted to wait for someone else to volunteer.  The hypotheses that individuals use backward induction, rely on a focal point, or act as if they are playing against nature to determine their actions are evaluated using the data from a laboratory environment.  Laboratory results provide more support for the play-against-nature hypothesis than the others.

Send Correspondence to:

Stuart Mestelman
Department of Economics
McMaster University
Hamilton, Ontario L8S 4M4
Canada
e-mail: mestelma@mcmaster.ca


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