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Interior collective optimum in a voluntary contribution to a public-goods game

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  • W. Hichri

Abstract

This study shows a public good experiment with four different treatments. The payoff function is chosen so that the Nash equilibrium (NE) and the collective optimum (CO) are both in the interior of the strategy space. This study tries to test the effect of varying the level of the collective optimum, which changes the 'social dilemma', involved in the decision as to how much to contribute to the public good. The results show that contributions increase with the level of the interior CO. There is overcontribution in comparison to the NE and undercontribution in comparison to the CO. But contributions are as far from the CO as the level of the former increases. An overcontribution index that takes into account the effective contribution relative to both the NE and the CO, shows that subjects adopt a constant behaviour while passing from one treatment to another: they contribute a constant share of the CO.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 11 (2004)
Issue (Month): 3 ()
Pages: 135-140

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Handle: RePEc:taf:apeclt:v:11:y:2004:i:3:p:135-140

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  1. van Dijk, Frans & van Winden, Frans, 1997. "Dynamics of social ties and local public good provision," Journal of Public Economics, Elsevier, vol. 64(3), pages 323-341, June.
  2. Palfrey, Thomas R & Prisbrey, Jeffrey E, 1997. "Anomalous Behavior in Public Goods Experiments: How Much and Why?," American Economic Review, American Economic Association, vol. 87(5), pages 829-46, December.
  3. Anderson, Simon P. & Goeree, Jacob K. & Holt, Charles A., 1998. "A theoretical analysis of altruism and decision error in public goods games," Journal of Public Economics, Elsevier, vol. 70(2), pages 297-323, November.
  4. Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Muller, R. Andrew, 1997. "Equity theory and the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 349-364, March.
  5. Sefton, Martin & Steinberg, Richard, 1996. "Reward structures in public good experiments," Journal of Public Economics, Elsevier, vol. 61(2), pages 263-287, August.
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Cited by:
  1. repec:ebl:ecbull:v:3:y:2008:i:51:p:1-9 is not listed on IDEAS
  2. Walid Hichri, 2006. "Individual strategies and aggregate behavior in a public-goods experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 969-973.
  3. Walid HICHRI, 2005. "The Individual Behavior in a Public Goods game," Experimental 0502003, EconWPA.
  4. Hichri, Pavel & Hichri, Walid, 2008. "An auction mechanism for public goods provision: an experimental study," MPRA Paper 7884, University Library of Munich, Germany, revised 2008.
  5. Diev, P. & Hichri, W., 2008. "Dynamic voluntary contributions to a discrete public good: Experimental evidence," Working papers 214, Banque de France.
  6. repec:ebl:ecbull:v:3:y:2008:i:23:p:1-11 is not listed on IDEAS
  7. Koji Kotani & Shunsuke Managi & Kenta Tanaka, 2008. "Further investigations of framing effects on cooperative choices in a provision point mechanism," Economics Bulletin, AccessEcon, vol. 3(51), pages 1-9.

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