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Contribute once! Full efficiency in a dynamic contribution game

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  • Tajika, Tomoya

Abstract

Dynamic public good contribution games in the literature allow players to contribute in multiple periods. These games typically have inefficient and, sometimes, (approximately) efficient subgame perfect equilibria. Inefficiency can take the form of either delayed provision or nonprovision of the public good. In contrast, this paper studies a game that differs primarily in that each player can contribute only once. Each player thus chooses the period at which they contribute, and the size of the contribution. The main result is that if the number of periods is finite but larger than the number of players, then every subgame perfect equilibrium in which each player's contribution amount is strictly less than that player's valuation for the good is efficient: the public good is provided without delay.

Suggested Citation

  • Tajika, Tomoya, 2020. "Contribute once! Full efficiency in a dynamic contribution game," Games and Economic Behavior, Elsevier, vol. 123(C), pages 228-239.
    • Handle: RePEc:eee:gamebe:v:123:y:2020:i:c:p:228-239
    DOI: 10.1016/j.geb.2020.07.011
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    2. Yu, Zhixian, 2022. "Contribution games with asymmetric agents," Journal of Mathematical Economics, Elsevier, vol. 102(C).

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    More about this item

    Keywords

    Dynamic contribution game; Contribute once; Efficiency;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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