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Leading by example with and without exclusion power in voluntary contribution experiments
Institution:1. Max Planck Institute of Economics, Strategic Interaction Group, Kahlaische Strasse 10, D-07745 Jena, Germany;2. University of Innsbruck, Department of Economics, Universitaetsstrasse 15, A-6020 Innsbruck, Austria;3. Tilburg University, Department of Economics and CentER, P.O. Box 90153, NL-5000 LE Tilburg, The Netherlands
Abstract:We examine the effects of leading by example in voluntary contribution experiments. Leadership is implemented by letting one group member contribute to the public good before followers do. Such leadership increases contributions in comparison to the standard voluntary contribution mechanism, especially so when it goes along with authority in the form of granting the leader exclusion power. Whether leadership is fixed or rotating among group members has no significant influence on contributions. Only a minority of groups succeeds in endogenously installing a leader, even though groups with leaders are much more efficient than groups without a leader.
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