Voluntary revelation of the demand for public goods using a provision point mechanism

A one-shot provision point mechanism with money-back guarantee and proporti onal rebate of excess contributions is tested in an induced value framework . and in experimental environments chosen to mimic field conditions. The re sults show that this relatively simple mechanism is empirically demand reve aling in the aggregate when used with large groups of students who have het erogenous valuations for the public good. Approximately demand revealing be havior was obtained under three alternative information conditions. These r esults are an important step in the design of a mechanism simple enough to allow field applications, but capable of efficiently providing public goods through voluntary contributions. (C) 1999 Elsevier Science S.A. All rights reserved.