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Public good and private good valuation for waiting time reduction: a laboratory study
- Source :
- Social Choice and Welfare. 39:35-57
- Publication Year :
- 2011
- Publisher :
- Springer Science and Business Media LLC, 2011.
-
Abstract
- In a laboratory experiment, subjects were endowed with money and waiting time. Preferences for waiting time reduction were elicited with salient rewards both as a private good and as a public good. The allocations of the public good that were theoretically predicted by the Nash equilibrium and the Lindahl equilibrium, respectively, were computed from the individual private good valuations and compared with the subjects’ actual contributions. We found a significant positive correlation between private good valuations in terms of willingness-to-pay and public good valuations in terms of voluntary contributions. Group contributions to public waiting time reduction significantly exceeded the non-cooperative prediction and were close to the socially optimal level. However, for a majority of subjects, the Lindahl equilibrium was not able to predict the observed contributions.
- Subjects :
- Waiting time
Economics and Econometrics
jel:C90
Actuarial science
Reduction (recursion theory)
jel:D61
Cartel Stability, Delegation, Relative Performance Evaluation
TheoryofComputation_GENERAL
jel:H41
Public good
Microeconomics
Private good
symbols.namesake
Nash equilibrium
Vickrey auction
Economics
Econometrics
symbols
Common value auction
Laboratory experiment
Social Sciences (miscellaneous)
Public finance
Valuation (finance)
Subjects
Details
- ISSN :
- 1432217X and 01761714
- Volume :
- 39
- Database :
- OpenAIRE
- Journal :
- Social Choice and Welfare
- Accession number :
- edsair.doi.dedup.....877b4355f273d583c9cebd4309b4b251