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Experimental (re-)analysis of the house-money effect in a public goods game

Published online by Cambridge University Press:  01 January 2025

Nicholas T. Bailey ,
Abhijit Ramalingam  and
Brock V. Stoddard Open the ORCID record for Brock V. Stoddard [Opens in a new window]
Nicholas T. Bailey*
Affiliation:
Deloitte, 150 Fayetteville Street Mall, 27601 Raleigh, NC, USA
Abhijit Ramalingam*
Affiliation:
Department of Economics, Walker College of Business, Appalachian State University, Peacock Hall, 28608 Boone, NC, USA
Brock V. Stoddard*
Affiliation:
Department of Economics, Walker College of Business, Appalachian State University, Peacock Hall, 28608 Boone, NC, USA
*
[email protected]
[email protected]
e-mail: [email protected]
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Abstract

Experiments in economics usually provide subjects with starting capital to be used in the experiment. This practice could affect decisions as there is no risk of loss. This phenomenon is known as the house-money effect. In a repeated public goods game, we test for house-money effects by paying subjects in advance an amount they could lose in the experiment. We do not find evidence of a house-money effect over time.

Keywords

House-moneyCooperationPublic goodsExperiment

JEL classification

H41: Public Goods C91: Laboratory, Individual Behavior C92: Laboratory, Group Behavior
Type
Original Paper
Information
Journal of the Economic Science Association , Volume 9 , Issue 1 , June 2023 , pp. 1 - 14
Copyright
Copyright © The Author(s), under exclusive licence to Economic Science Association 2022. corrected publication 2023.

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Footnotes

The original online version of this article was revised: Due to incorrect details in the reference Cherry et al., (2005). Now, it has been corrected.

A correction to this article is available online at https://doi.org/10.1007/s40881-023-00126-6.

corrected publication 2023

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