Informing Generic Advertising Programs by Investigating Income and Relative Return Heterogeneities in Voluntary Contributions Mechanisms
By: Kassas, Bachir ; Palma, Marco A. ; Hall, Charles R.
Kassas, Bachir ; Palma, Marco A. ; Hall, Charles R., Informing Generic Advertising Programs by Investigating Income and Relative Return Heterogeneities in Voluntary Contributions Mechanisms, Journal of Agricultural and Resource Economics, Volume 46, Issue 2, May 2021, Pages 171-188
The consistent appeals against mandatory checkoff programs stimulated a wave of research investigating voluntary contributions mechanisms (VCMs) as a potential alternative in the provision of generic advertising. Using a public goods experiment with heterogeneous income and marginal per capita returns (MPCR), we examine the interaction between high- and low-income individuals in VCMs, an understanding of which can help enhance the performance of voluntary generic advertising programs. While free-riders were present among both income types, the majority of low-income individuals were keen on stimulating higher contributions through cooperation. Conversely, high-income individuals tended to decrease their contributions in the presence of the low-income type.