LIU, Jia, SONNTAG, Axel and ZIZZO, Daniel John (2022). Information defaults in repeated public good provision. Journal of Economic Behavior & Organization, 197, 356-369. [Article]
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30006:601935
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Defaults_2022-03-04 cs - with title page.pdf - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.
Defaults_2022-03-04 cs - with title page.pdf - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.
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Abstract
We study an unexplored type of defaults - information defaults - in a repeated public good provision setting. In our treatments, we vary the default of having or not having contribution information as well as whether the information comes with a positive, zero or negative financial incentive. We find that almost all subjects have the information when this is cost-free or financially beneficial, but around a third have the information even when this is costly. Moreover, a default of not having information leads to a slower unraveling of cooperation which is matched by the beliefs about others’ contributions in these treatments. We also find a secondary informational default effect, challenging previous findings on how defaults work: when the default is no information, subjects do not seek information more often, but they tend to believe that more other subjects seek information.
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