Otto-von-Guericke-Universität Magdeburg FWW der Otto-von-Guericke-Universität Magdeburg
Fakult√ɬ§t f√ɬľr Wirtschaftswissenschaft



Public good experiments with large groups

Weimann J.*, Brosig J.**, Hennig-Schmidt H.***, Keser, C.****, Stahr Ch.*


Public good experiments conducted in the lab are usually played with small groups of up to ten subjects. As a consequence these experiments underlie a critical restriction concerning the marginal per capita return of the public good (MPCR). The MPCR-value in a PG experiment cannot become greater than 1/N because otherwise the payoff function would no longer describe a public good problem. Public good problems in the real world are characterized by a MPCR close to zero because very large groups are concerned. Therefore, the results of small group experiments allow only limited insights with respect to realistic public good problems. To solve this problem we conducted PG experiments with 60 and 100 subjects simultaneously in the lab. Technically this became possible because we played in four labs simultaneously which were connected via the internet. We played the PG game with 60 and 100 subjects an a MPCR of 0.02 and 0.04. In total we will have more than 4.000 subjects attending the experiments. At the time being, the experiments are not completed but our first results show that the MPCR seems to play a very important role even in large groups of 100 subjects. All experiments will be completed in a few weeks and in July we will have a first draft of the paper.


* University of Magdeburg
** University of Duisburg-Essen
*** University of Bonn
**** University of GŲttingen


Research Project Andreas Hoffmann:

ASSESS-HKH - Development of an Assessment System to Evaluate the Ecological Status of Rivers in the Hindu Kush-Himalayan Region

The ASSESS-HKH Project is an EU funded project under FP6, INCO DEV and is part of the EUís specific measures in support of international co-operation in developing countries. The Hindu Kush-Himalayan region is not only the world's highest mountain region, but also the most populous, covering some 3,500 km≤ over eight countries from Pakistan in the west to Myanmar in the east. It sustains approximately 140 million people and affects the lives of more than three times as many in the plains and river basins below. The HKH region is a vast storehouse of hydropower, timber, firewood, medicinal plants, rich minerals and last, but not least, water. The specific and verifiable objectives of the ASSESS-HKH Project are:
1. Develop and validate a three-tier methodology to identify environmental hot spots in rivers of the HKH region using benthic invertebrates as bioindicators.
2. Adapt and further develop an information management tool (application software and data-bases) to perform analysis calculations for quantification and rating of ecological status of rivers based on biotic (i.e. macroinvertebrate) data.
3. To interpret ecological data collected in the HKH region to validate the assessment methodology and information management tool and provide a basis for policy recommendation, transnational water resource planning and ecosystem management.
4. Capacity building of local scientists in the field of recognition and application of criteria for biological indicators in ecosystem management.
5. Dissemination and awareness creation on the importance and usefulness of biological
Our Chair contributes to the following tasks:
- Review of existing policies with regard to sustainable water management and describe the socio-economic aspects related to the pressures and impacts:
- Development of ďSustainable Management StrategiesĒ in the form of a policy recommendation for establishing an HKH transnational river and stream monitoring programme.
The project is a first step in establishing an effective water quality monitoring programme in the HKH region which is a prerequisite to evaluate the effectiveness of sustainable management strategies and to enforce their implementation.

Contract number: INCO-CT-2005-003659