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

Banerjee, Anwesha

doi:10.1016/j.socec.2024.102165

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

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Banerjee, Anwesha
Public Economics, MPI for Tax Law and Public Finance, Max Planck Society;

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Citation

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

Cite as: https://hdl.handle.net/21.11116/0000-000F-4C76-8

Abstract

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.