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Voluntary Contributions to Property Rights

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  • David M. Bruner
  • John R. Boyce
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    Abstract

    This paper reports the results of an experimental test of the Nash equilibrium prediction of voluntary provision of property rights in a contest under anarchy. Speci cally, the experiment investigates whether pre-commitment induces positive provision of property rights. As pre- dicted, zero contributions to property rights are observed without pre- commitment. Positive voluntary contributions are observed with pre- commitment, but are less than predicted. Nonetheless, as predicted, stronger property rights with pre-commitment results in less con ict and more production. The experiment also tests predictions for group- size e ects. While average contributions to property rights are un- a ected by group-size, mean con ict increases and mean production decreases with larger groups. Key Words: Property Rights; Con ict; Public Goods; Experiments

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    Bibliographic Info

    Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 13-14.

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    Date of creation: 2013
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    Handle: RePEc:apl:wpaper:13-14

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    1. Gonzalez, Francisco M., 2007. "Effective property rights, conflict and growth," Journal of Economic Theory, Elsevier, vol. 137(1), pages 127-139, November.
    2. Fahr, Rene & Irlenbusch, Bernd, 2000. "Fairness as a constraint on trust in reciprocity: earned property rights in a reciprocal exchange experiment," Economics Letters, Elsevier, vol. 66(3), pages 275-282, March.
    3. Erik O. Kimbrough & Vernon L. Smith & Bart J. Wilson, 2008. "Historical Property Rights, Sociality, and the Emergence of Impersonal Exchange in Long-Distance Trade," American Economic Review, American Economic Association, vol. 98(3), pages 1009-39, June.
    4. Gradstein, Mark, 2004. "Governance and growth," Journal of Development Economics, Elsevier, vol. 73(2), pages 505-518, April.
    5. Carter, John R. & Anderton, Charles H., 2001. "An experimental test of a predator-prey model of appropriation," Journal of Economic Behavior & Organization, Elsevier, vol. 45(1), pages 83-97, May.
    6. Adam Smith & David Skarbek & Bart Wilson, 2012. "Anarchy, groups, and conflict: an experiment on the emergence of protective associations," Social Choice and Welfare, Springer, vol. 38(2), pages 325-353, February.
    7. Garfinkel, Michelle R, 1990. "Arming as a Strategic Investment in a Cooperative Equilibrium," American Economic Review, American Economic Association, vol. 80(1), pages 50-68, March.
    8. Powell, Benjamin & Wilson, Bart J., 2008. "An experimental investigation of Hobbesian jungles," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 669-686, June.
    9. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
    10. David M. Bruner & Robert J. Oxoby, 2012. "Investment under Anarchy," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 168(4), pages 731-753, December.
    11. John Boyce & David Bruner, 2012. "Property rights out of anarchy? The Demsetz hypothesis in a game of conflict," Economics of Governance, Springer, vol. 13(2), pages 95-120, June.
    12. Oxoby, Robert J. & Spraggon, John, 2008. "Mine and yours: Property rights in dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 703-713, March.
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