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Free Riding with Discrete and Continuous Public Goods: Some Experimental Evidence

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Author Info
 Asch, Peter
Gigliotti, Gary A
Polito, James A
Abstract

Two experimental designs were employed in which subjects were offered either a 'discrete' public good, for which group contributions must meet a provision point before subjects receive payoffs; and a 'continuous' public good, which returned 30 percent of group contributions to each subject at all contributions levels. Free riding, or non-contribution, is a dominant strategy in the continuous case. Non-contribution is not a dominant strategy in the discrete case; there are multiple equilibria. Contribution levels were similar in both cases, and did not vary significantly with method of payment (hypothetical versus real money); earnings, however, were higher in the continuous and real-money versions of the experiment. Subjects' demographic characteristics made little difference to contribution patterns. The most significant determinant of contributions was the round of the 'game.' Roughly speaking, subjects contributed less the longer they played, regardless of other factors. Copyright 1993 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 77 (1993)
Issue (Month): 2 (October)
Pages: 293-305
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Handle: RePEc:kap:pubcho:v:77:y:1993:i:2:p:293-305

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  1. Rondeau, Daniel & Schulze, William D. & Poe, Gregory L., 1998. "Voluntary Revelation Of The Demand For Public Goods Using A Provision Point Mechanism," Working Papers 7265, Cornell University, Department of Applied Economics and Management. [Downloadable!]
    Other versions:
  2. Jennifer Zelmer, 2003. "Linear Public Goods Experiments: A Meta-Analysis," Experimental Economics, Springer, vol. 6(3), pages 299-310, November. [Downloadable!] (restricted)
  3. Rachel Croson & Melanie Marks, 2000. "Step Returns in Threshold Public Goods: A Meta- and Experimental Analysis," Experimental Economics, Springer, vol. 2(3), pages 239-259, March. [Downloadable!] (restricted)
  4. David M. McEvoy, 2009. "Not It: Opting out of Voluntary Coalitions that Provide a Public Good," Working Papers 09-14, Department of Economics, Appalachian State University. [Downloadable!]
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