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Yoav Wachsman
''Intragroup Communication in a Public Goods Experiment with Nested Exchanges''
( 2018, Vol. 38 No.4 )
Agents can often choose between providing a public good through a small, local exchange or a larger, global exchange. This paper reports a public goods experiment with a local exchange, which benefits the contributor's local group, and a global exchange, which benefits all the participants. The paper investigates the effects of intragroup communication on participants' allocation decisions. It finds that intragroup communication nearly eliminates free-riding but can also reduce intergroup cooperation.
Keywords: Voluntary Contributions Mechanism, Public Goods, Communication, Intergroup Cooperation
JEL: C9 - Design of Experiments: General
H4 - Publicly Provided Goods: General
Manuscript Received : Jun 12 2018 Manuscript Accepted : Dec 02 2018

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