How to Select the Leader in a One-Shot Public Goods Game: Evidence from the Laboratory

We experimentally study how leadership selection mechanisms affect public goods provision. Introducing leadership does not raise contribution. Voluntary leadership performs the worst, primarily because the absence of leadership signals uncooperative play, and candidates free-ride on other leaders. Voluntary leadership from a randomly selected candidate is a promising endogenous leadership selection mechanism, primarily because assuming leadership by revealed preference signals cooperative play, the absence of leadership leaves the possibility of unlucky cooperative candidates, and sole leadership removes the leader's free-riding incentives.