Seminar: Match Point: Experiment on Matching Rates and Matching Basis

Presenter: Marius Alt, ZEW
Title: Match Point: Experiment on Matching Rates and Matching Basis (working title)

Abstract

In this laboratory experiment, we assess the marginal effect of matching rates to fund a public good among heterogeneous actors. Based on Fischbacher et al. (2001) in a first stage, cooperation types are identified. In a second stage, the subject with a high endowment provides contributions to the public good by matching the other subject’s contribution decision. In additional treatments, participants are informed about thresholds that need to be exceeded for the match to occur. Previous field experiments indicate a responsiveness to different matching rates lower than 1:1. However, the marginal effect of matching seems to flatten above this rate (e.g. Karlan & List 2007). Our experiment complements the literature by eliciting responses to a continuous range of matching rates up to 3:1. The preliminary results indicate large heterogeneity in responses to matching rates, which can be categorized in established cooperation types as well as matching-task-related patterns. Compared to a standard public goods game, the scheme achieves an increase in the extensive margin, crowding in contributions of previous non-contributors.

About the seminars

The intention with the seminars is to have paper presentations by external and internal IFRO people – but importantly the time slots can also be used for presenting ideas for future behavioral and experimental studies, and this way we often have very fruitful discussions and create constructive feedback for the presenter.

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