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All it takes is one: The effect of weakest-link and summation aggregation on public good provision under threshold uncertainty

Abstract
We report experimental evidence on the voluntary provision of public goods under threshold uncertainty. By explicitly comparing two prominent technologies, summation and weakest link, we show that uncertainty is particularly detrimental to threshold attainment under weakest link, where low contributions by one subject cannot be compensated by others. In contrast, threshold uncertainty does not affect contributions under summation. We demonstrate non-binding pledges as one mechanism to improve chances of threshold attainment under both technologies, yet in particular under weakest link.
Publisher
University of Gothenburg
Other description
C91, H41, Q54
URI
http://hdl.handle.net/2077/70177
Collections
  • Working papers
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gupea_2077_70177_1.pdf (1.253Mb)
Date
2021-11
Author
Carlsson, Fredrik
Ek, Claes
Lange, Andreas
Keywords
public goods
threshold uncertainty
weakest link
coordination
experiment
Publication type
report
ISSN
1403-2465
Series/Report no.
Working Papers in Economics
813
Language
eng
Metadata
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