Quadratic Funding with Incomplete Information
Luis V. M. Freitas (Global Priorities Institute,
University of Oxford) and Wilfredo L. Maldonado
(University of Sao Paulo)
GPI Working Paper No. 10 - 2022, published in Social Choice and Welfare
Quadratic funding is a public good provision mechanism that satisfies desirable theoretical properties, such as efficiency under complete information, and has been gaining popularity in practical applications. We evaluate this mechanism in a setting of incomplete information regarding individual preferences, and show that this result only holds under knife-edge conditions. We also estimate the inefficiency of the mechanism in a variety of settings and show, in particular, that inefficiency increases in population size and in the variance of expected contribution to the public good. We show how these findings can be used to estimate the mechanism’s inefficiency in a wide range of situations under incomplete information.
Other working papers
Altruism in governance: Insights from randomized training – Sultan Mehmood, (New Economic School), Shaheen Naseer (Lahore School of Economics) and Daniel L. Chen (Toulouse School of Economics)
Randomizing different schools of thought in training altruism finds that training junior deputy ministers in the utility of empathy renders at least a 0.4 standard deviation increase in altruism. Treated ministers increased their perspective-taking: blood donations doubled, but only when blood banks requested their exact blood type. Perspective-taking in strategic dilemmas improved. Field measures such as orphanage visits and volunteering in impoverished schools also increased, as did their test scores in teamwork assessments…
Doomsday and objective chance – Teruji Thomas (Global Priorities Institute, Oxford University)
Lewis’s Principal Principle says that one should usually align one’s credences with the known chances. In this paper I develop a version of the Principal Principle that deals well with some exceptional cases related to the distinction between metaphysical and epistemic modality. I explain how this principle gives a unified account of the Sleeping Beauty problem and chance-based principles of anthropic reasoning…
Intergenerational equity under catastrophic climate change – Aurélie Méjean (CNRS, Paris), Antonin Pottier (EHESS, CIRED, Paris), Stéphane Zuber (CNRS, Paris) and Marc Fleurbaey (CNRS, Paris School of Economics)
Climate change raises the issue of intergenerational equity. As climate change threatens irreversible and dangerous impacts, possibly leading to extinction, the most relevant trade-off may not be between present and future consumption, but between present consumption and the mere existence of future generations. To investigate this trade-off, we build an integrated assessment model that explicitly accounts for the risk of extinction of future generations…