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Step return versus net reward in the voluntary provision of a threshold public good: An adversarial collaboration |
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| Authors: | Charles Bram Cadsby Rachel Croson Melanie Marks Elizabeth Maynes |
| Affiliation: | 1. Department of Economics, University of Guelph, 50 Stone Road East, Guelph, ON, N1G 2W1, Canada 2. School of Economics, Political and Policy Sciences and School of Management, University of Texas at Dallas, Richardson, TX, 75080-3021, USA 3. School of Business and Economics, Longwood University, Farmville, VA, 23909, USA 4. Schulich School of Business, York University, Toronto, ON, M3J 1P3, Canada |
| Abstract: | This research concerns how costs and benefits affect the voluntary provision of threshold public goods. Cadsby and Maynes (J. Public Econ. 71:53–73, 1999) hypothesized that the difference between the value and cost of such a good, its net reward, influences the likelihood of provision. Croson and Marks (Exp. Econ. 2:239–259, 2000) focused on the ratio of group payoff to total cost, the step return. We find that step return is the best predictor overall, although net reward has some impact, negatively affecting the probability of provision with inexperienced participants and positively affecting it with experienced participants. |
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