How to subsidize contributions to public goods: Does the frog jump out of the boiling water?
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| Publication date | 2015 |
| Journal | European Economic Review |
| Volume | Issue number | 74 |
| Pages (from-to) | 96-108 |
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| Abstract | According to popular belief, frogs are boiled to death when the water is heated gradually. In this paper, we investigate how humans respond to a very slow versus a very steep increase of a subsidy on contributions to a public good. In an experiment, we vary the mode of the increase (gradual versus quick). When the subsidy is raised to an intermediate level, we see a modest effect in either treatment. When the subsidy is raised to a substantial level, there is a strong effect of a quick increase and a modest effect of a gradual increase in the subsidy. |
| Document type | Article |
| Language | English |
| Related dataset | Data for: How to subsidize contributions to public goods: Does the frog jump out of the boiling water? |
| Published at |
https://doi.org/10.1016/j.euroecorev.2014.11.007
(Final published version)
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