CeDEx
Centre for Decision Research and Experimental Economics
   
   
  

CeDEx 2010-12: The Effects of (Incentivized) Belief Elicitation in Public Goods Experiments

Abstract

Belief elicitation is an important methodological issue for experimental economists. There are two generic questions: 1) Do incentives increase belief accuracy? 2) Are there interaction effects of beliefs and decisions? We investigate these questions in the case of finitely repeated public goods experiments. We find that belief accuracy is significantly higher when beliefs are incentivized. The relationship between contributions and beliefs is slightly steeper under incentives. However, we find that incentivized beliefs tend to lead to higher contribution levels than either non-incentivized beliefs or no beliefs at all. We discuss the implications of our results for the design of public good experiments.

Download the paper in PDF format

Revised version of 2006-16

Now published in Experimental Economics

Authors

Simon Gächter and Elke Renner

 

View all CeDEx discussion papers | View all School of Economics featured discussion papers

 

Posted on Tuesday 1st June 2010

Centre for Decision Research and Experimental Economics

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

telephone: +44 (0)115 951 4763
Enquiries: suzanne.robey@nottingham.ac.uk
Experiments: cedex@nottingham.ac.uk