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Resolving Ambiguity as a Public Good: Experimental Evidence from Guyana

We present a decision-making experiment, conducted in the field, that explores the extent to which reduction of ambiguity can be a public good. We find evidence that people with a preference to avoid ambiguity contribute to the public good. We find that risk averse people free-ride. Cheap talk erases the predictability of who free rides, but does not affect the overall public good provision, either in a positive or a negative direction. Finally, we find that people draw appropriate inference from the evidence that the public good provides. We relate our findings to the issue of new technology adoption.
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