Resolving Ambiguity as a Public Good: Experimental Evidence from Guyana
We
present a decision-making experiment, conducted in the field, that explores the
extent to which reduction of ambiguity can be a public good. We find evidence
that people with a preference to avoid ambiguity contribute to the public good.
We find that risk averse people free-ride. Cheap talk erases the predictability
of who free rides, but does not affect the overall public good provision,
either in a positive or a negative direction. Finally, we find that people draw
appropriate inference from the evidence that the public good provides. We
relate our findings to the issue of new technology adoption.
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