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The Voluntary Provision of a Pure Public Good with Diminishing Marginal Returns

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  • Laury, Susan K
  • Walker, James M
  • Williams, Arlington W

Abstract

In experiments investigating the voluntary provision of a pure public good, participants consistently allocate resources to this good when the Nash prediction is to allocate nothing. This paper explores the robustness of this result when the Nash prediction calls for a division of resources between the private and public goods. The authors consider how a change in individual resource endowments and supplemental earnings information affect allocations to the public good. Results indicate that, under both the high and low endowment conditions, groups continue to allocate more resources than the Nash prediction. However, providing participants with detailed instructions that describe the declining marginal benefit to the public good leads to a significant decrease in allocations to the public good. Copyright 1999 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 99 (1999)
Issue (Month): 1-2 (April)
Pages: 139-60

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Handle: RePEc:kap:pubcho:v:99:y:1999:i:1-2:p:139-60

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Carmela Di Mauro & Massimo Finocchiaro Castro, 2011. "Kindness, confusion, or … ambiguity?," Experimental Economics, Springer, vol. 14(4), pages 611-633, November.
  2. Jonathan Maurice & Agathe Rouaix & Marc Willinger, 2013. "Income Redistribution And Public Good Provision: An Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54, pages 957-975, 08.
  3. Martin Beckenkamp, 2006. "A game-theoretic taxonomy of social dilemmas," Central European Journal of Operations Research, Springer, vol. 14(3), pages 337-353, September.
  4. R. Isaac & James Walker, 1998. "Nash as an Organizing Principle in the Voluntary Provision of Public Goods: Experimental Evidence," Experimental Economics, Springer, vol. 1(3), pages 191-206, December.
  5. Cadigan, John & Wayland, Patrick T. & Schmitt, Pamela & Swope, Kurtis, 2011. "An experimental dynamic public goods game with carryover," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 523-531.
  6. Frank P. Maier-Rigaud & Jose Apesteguia, 2004. "The Role of Rivalry. Public Goods versus Common-Pool Resources," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2004_2, Max Planck Institute for Research on Collective Goods.
  7. Mathieu Désolé & Stefano Farolfi & Patrick Rio, 2012. "How does context influence players’ behaviour ? Experimental assessment in a 3-player coordination problem," Working Papers, LAMETA, Universtiy of Montpellier 12-36, LAMETA, Universtiy of Montpellier, revised Dec 2012.
  8. Kameda, Tatsuya & Tsukasaki, Takafumi & Hastie, Reid & Berg, Nathan, 2010. "Democracy under uncertainty: The ‘wisdom of crowds’ and the free-rider problem in group decision making," MPRA Paper 26584, University Library of Munich, Germany.

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