Do clubs foster provision success?

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14 January 2014

We report the results of an experiment on the provision of a step-level collective good. We compare subjects’ behavior in a public good game and in a club good game. In the club good game, players who contribute less than the amount required to become a member, do not benefit from the collective good. Compared to the benchmark steplevel public good, we find that the introduction of a small membership fee has surprisingly strong effects. It increases significantly the provision success of the collective good.