Not It: Opting out of Voluntary Coalitions that Provide a Public Good
AbstractMost coalitions that form to increase contributions to a public good do not require full participation by all users of the public good, and therefore create incentives for free riding. If given the opportunity to opt out of a voluntary coalition, in theory, agents should try to be among the first to do so, forcing the remaining undecided agents to bear the cost of participating in the coalition. This study tests the predicted sequence of participation decisions in voluntary coalitions using real-time threshold public goods experiments. We find that subjects’ behavior is more consistent with the theoretical predictions when the difference in payoffs between coalition members and free-riding non-members is relatively large. Key Words: voluntary coalitions, voluntary agreements, public goods experiments, free riding
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Appalachian State University in its series Working Papers with number 09-14.
Date of creation: 2009
Date of revision:
Contact details of provider:
Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Web page: http://www.business.appstate.edu/departments/economics/
More information through EDIRC
Other versions of this item:
- David McEvoy, 2010. "Not it: opting out of voluntary coalitions that provide a public good," Public Choice, Springer, vol. 142(1), pages 9-23, January.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-30 (All new papers)
- NEP-CBE-2009-05-30 (Cognitive & Behavioural Economics)
- NEP-EXP-2009-05-30 (Experimental Economics)
- NEP-GTH-2009-05-30 (Game Theory)
- NEP-PBE-2009-05-30 (Public Economics)
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.:
- Dorsey, Robert E, 1992. " The Voluntary Contributions Mechanism with Real Time Revisions," Public Choice, Springer, vol. 73(3), pages 261-82, April.
- Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983.
"On the Stability of Collusive Price Leadership,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 16(1), pages 17-25, February.
- David Cooper & Carol Stockman, 2002. "Learning to Punish: Experimental Evidence from a Sequential Step-Level Public Goods Game," Experimental Economics, Springer, vol. 5(1), pages 39-51, June.
- Kolstad, Charles D., 2007. "Systematic uncertainty in self-enforcing international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 68-79, January.
- Bagnoli, Mark & McKee, Michael, 1991. "Voluntary Contribution Games: Efficient Private Provision of Public Goods," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 351-66, April.
- Rondeau, Daniel & Schulze, William D. & Poe, Gregory L., 1997.
"Voluntary Revelation Of The Demand For Public Goods Using A Provision Point Mechanism,"
7265, Cornell University, Department of Applied Economics and Management.
- Rondeau, Daniel & D. Schulze, William & Poe, Gregory L., 1999. "Voluntary revelation of the demand for public goods using a provision point mechanism," Journal of Public Economics, Elsevier, vol. 72(3), pages 455-470, June.
- Cason, Timothy N. & Saijo, Tatsuyoshi & Yamato, Takehiko & Yokotani, Konomu, 2004.
"Non-excludable public good experiments,"
Games and Economic Behavior,
Elsevier, vol. 49(1), pages 81-102, October.
- Tatsuyoshi Saijo, 2003. "Non-Excludable Public Good Experiments," Theory workshop papers 505798000000000027, UCLA Department of Economics.
- Saijo, Tatsuyoshi & Yamato, Takehiko & Yokotani, Konomu & Cason, Timothy N., 2002. "Non-Excludable Public Good Experiments," Working Papers 1154, California Institute of Technology, Division of the Humanities and Social Sciences.
- James Andreoni & Rachel Croson, 2001.
"Partners versus Strangers: Random Rematching in Public Goods Experiments,"
Levine's Working Paper Archive
563824000000000132, David K. Levine.
- Andreoni, James & Croson, Rachel, 2008. "Partners versus Strangers: Random Rematching in Public Goods Experiments," Handbook of Experimental Economics Results, Elsevier.
- Andreoni,J. & Croson,R., 1998. "Partners versus strangers : random rematching in public goods experiments," Working papers 11, Wisconsin Madison - Social Systems.
- Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001.
"Are people conditionally cooperative? Evidence from a public goods experiment,"
Elsevier, vol. 71(3), pages 397-404, June.
- Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
- R. Isaac & David Schmidtz & James Walker, 1989. "The assurance problem in a laboratory market," Public Choice, Springer, vol. 62(3), pages 217-236, September.
- Bruno S. Frey & Stephan Meier, 2004.
"Social Comparisons and Pro-social Behavior: Testing "Conditional Cooperation" in a Field Experiment,"
American Economic Review,
American Economic Association, vol. 94(5), pages 1717-1722, December.
- Bruno S. Frey & Stephan Meier, . "Social Comparisons and Pro-social Behavior - Testing ‘Conditional Cooperation’ in a Field Experiment," IEW - Working Papers 162, Institute for Empirical Research in Economics - University of Zurich.
- Alistair Ulph, 2004. "Stable International Environmental Agreements with a Stock Pollutant, Uncertainty and Learning," Journal of Risk and Uncertainty, Springer, vol. 29(1), pages 53-73, 07.
- Cadsby, Charles Bram & Maynes, Elizabeth, 1999. "Voluntary provision of threshold public goods with continuous contributions: experimental evidence," Journal of Public Economics, Elsevier, vol. 71(1), pages 53-73, January.
- Marks, Melanie & Croson, Rachel, 1998. "Alternative rebate rules in the provision of a threshold public good: An experimental investigation," Journal of Public Economics, Elsevier, vol. 67(2), pages 195-220, February.
- Asch, Peter & Gigliotti, Gary A & Polito, James A, 1993. " Free Riding with Discrete and Continuous Public Goods: Some Experimental Evidence," Public Choice, Springer, vol. 77(2), pages 293-305, October.
- Charles Cadsby & Rachel Croson & Melanie Marks & Elizabeth Maynes, 2008. "Step return versus net reward in the voluntary provision of a threshold public good: An adversarial collaboration," Public Choice, Springer, vol. 135(3), pages 277-289, June.
- Oran R. Young, 2003. "Environment and Statecraft: The Strategy of Environmental Treaty-Making," Global Environmental Politics, MIT Press, vol. 3(1), pages 145-147, 02.
- Jennifer C. Coats & William S. Neilson, 2005. "Beliefs About Other-Regarding Preferences in a Sequential Public Goods Game," Economic Inquiry, Western Economic Association International, vol. 43(3), pages 614-622, July.
- Rapoport, Amnon & Eshed-Levy, Dalit, 1989. "Provision of step-level public goods: Effects of greed and fear of being gypped," Organizational Behavior and Human Decision Processes, Elsevier, vol. 44(3), pages 325-344, December.
- Rapoport, Amnon & Suleiman, Ramzi, 1993. "Incremental Contribution in Step-Level Public Goods Games with Asymmetric Players," Organizational Behavior and Human Decision Processes, Elsevier, vol. 55(2), pages 171-194, July.
- David M. McEvoy & James J. Murphy & John M. Spraggon & John K. Stranlund, 2008.
"The Problem of Maintaining Compliance within Stable Coalitions: Experimental Evidence,"
2008-2, University of Massachusetts Amherst, Department of Resource Economics.
- David M. McEvoy & James J. Murphy & John M. Spraggon & John K. Stranlund, 2011. "The problem of maintaining compliance within stable coalitions: experimental evidence," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 475-498, July.
- David M. McEvoy & James J. Murphy & John M. Spraggon & John K. Stranlund, 2008. "The Problem of Maintaining Compliance within Stable Coalitions: Experimental Evidence," Working Papers 08-10, Department of Economics, Appalachian State University.
- David M. McEvoy & James J. Murphy & John M. Spraggon & John K. Stranlund, 2010. "The problem of maintaining compliance within stable coalitions: experimental evidence," Working Papers 2010-02, University of Alaska Anchorage, Department of Economics.
- Leo Wangler & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2013.
"The political economy of international environmental agreements: a survey,"
International Environmental Agreements: Politics, Law and Economics,
Springer, vol. 13(3), pages 387-403, September.
- Leo Wangler & JJuan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2011. "The Political Economy of International Environmental Agreements: A Survey," Jena Economic Research Papers 2011-038, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Federica Alberti & Edward J. Cartwright, 2011. "Full agreement and the provision of threshold public goods," Jena Economic Research Papers 2011-063, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (O. Ashton Morgan).
If references are entirely missing, you can add them using this form.