BELIEFS ABOUT OTHER‐REGARDING PREFERENCES IN A SEQUENTIAL PUBLIC GOODS GAME

Experimental evidence is used to deduce players' beliefs about their opponents' concern for others. The experiment is a sequential public good provision game with a provision point and two different refund rules. A theory is constructed to show how early contributions should change with the refund rule depending on the first mover's beliefs about subsequent players' other‐regarding preferences. The evidence rejects the hypothesis that early...