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- W3123707935 abstract "This paper investigates fund-raising mechanisms based on a prize as a way to overcome free riding in the private provision of public goods, under the assumptions of income heterogeneity and incomplete information about income levels. We compare experimentally the performance of a lottery, an all-pay auction and a benchmark voluntary contribution mechanism. We find that prize-based mechanisms perform better than voluntary contribution in terms of public good provision after accounting for the cost of the prize. Comparing the prize-based mechanisms, total contributions are significantly higher in the lottery than in the all-pay auction. Focusing on individual income types, the lottery outperforms voluntary contributions and the all-pay auction throughout the income distribution." @default.
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- W3123707935 date "2007-03-01" @default.
- W3123707935 modified "2023-09-27" @default.
- W3123707935 title "A Prize to Give for: An Experiment on Public Good Funding Mechanisms" @default.
- W3123707935 hasPublicationYear "2007" @default.
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