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Journal of Conflict Resolution
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Leading by Example in a Public Goods Experiment with Heterogeneity and Incomplete Information

M. Vittoria Levati

Strategic Interaction Group Max Planck Institute of Economics, Jena, Germany and University of Bari, Italy

Matthias Sutter

Department of Economics University of Innsbruck, Austria

Eline van der Heijden

Department of Economics and CentER Tilburg University, Netherlands

We study the effects of leadership on the private provision of a public good when group members are heterogeneously endowed. Leadership is implemented as a sequential public goods game where one group member contributes first and all the others follow. Our results show that the presence of a leader increases average contribution levels but less so than in case of homogeneous endowments. Leadership is almost ineffective, though, if participants do not know the distribution of endowments. Granting the leaders exclusion power does not lead to significantly higher contributions.

Key Words: public goods experiment • leadership • exclusion • heterogeneous endowments • incomplete information

Journal of Conflict Resolution, Vol. 51, No. 5, 793-818 (2007)
DOI: 10.1177/0022002707302796
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