Year: 2008
Type: preprint
Abstract: This paper investigates fundraising mechanisms for the private provision of a public good which utilize competition as an incentive device for contributions. Theory predicts that “all-pay” competition is particularly effective for fundraising. Within this class of mechanisms different types of lotteries and all-pay auctions are analyzed and ranked. Three all-pay competition mechanisms are then examined in a laboratory experiment vis-à-vis a voluntary contribution mechanism (VCM). All three outperform the VCM and fully efficient outcomes are attained in the last-price all-pay auction after some learning has taken place.
Author: Henrik Orzen
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2115435990