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Heterogeneity, Coordination and the Provision of Best-Shot Public Goods

Published online by Cambridge University Press:  14 March 2025

Todd L. Cherry ,
Stephen J. Cotten  and
Stephan Kroll
Todd L. Cherry*
Affiliation:
Department of Economics, Appalachian State University, Boone, NC 28608-2051, USA CICERO Center for International Climate and Environmental Research-Oslo, P.O. Box 1129 Blindern, 0318 Oslo, Norway
Stephen J. Cotten
Affiliation:
Department of Economics and Finance, University of Houston-Clear Lake, Houston, TX 77058, USA
Stephan Kroll
Affiliation:
Department of Agricultural and Resource Economics, Colorado State University, Fort Collins, CO 80523, USA
*
e-mail: [email protected]
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Abstract

In a best-shot public good, where the provision level is determined by the highest contribution instead of the sum of all contributions, there is potential for waste and underprovision due to coordination failure. These failures are exacerbated when agents are identical because there is no focal point to guide coordination. In most real-world best-shot public-good situations, however, heterogeneity exists in the ability to contribute and the benefits received from the good. With such differences, shared expectations might emerge to improve coordination and increase efficiency. Using laboratory experiments, we find significant behavioral responses to heterogeneity that improve efficiency, but not always from increased coordination.

Keywords

Best-shot public goodsCoordination problemEndowment heterogeneityReturn heterogeneityExperiment

JEL classification

D01: Microeconomic Behavior: Underlying Principles H41: Public Goods C92: Laboratory, Group Behavior C72: Noncooperative Games
Type
Original Paper
Information
Experimental Economics , Volume 16 , Issue 4 , December 2013 , pp. 497 - 510
Copyright
Copyright © 2013 Economic Science Association

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