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

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Author Info
W. Hichri

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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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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 11 (2004)
Issue (Month): 3 (February)
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. 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. [Downloadable!] (restricted)
  2. Sefton, Martin & Steinberg, Richard, 1996. "Reward structures in public good experiments," Journal of Public Economics, Elsevier, vol. 61(2), pages 263-287, August. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. 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. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pavel Diev & Walid Hichri, 2008. "Dynamic voluntary contributions to a discrete public good: Experimental evidence," Economics Bulletin, Economics Bulletin, vol. 3(23), pages 1-11. [Downloadable!]
    Other versions:
  2. Walid Hichri, 2006. "Individual strategies and aggregate behavior in a public-goods experiment," Applied Economics Letters, Taylor and Francis Journals, vol. 13(15), pages 969-973, December. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. Koji Kotani & Shunsuke Managi & Kenta Tanaka, 2008. "Further investigations of framing effects on cooperative choices in a provision point mechanism," Economics Bulletin, Economics Bulletin, vol. 3(51), pages 1-9. [Downloadable!]
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This page was last updated on 2009-12-5.

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