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Continuous Time and Communication in a Public-goods Experiment

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  • Charness, Gary
  • Oprea, Ryan
  • Friedman, Dan

Abstract

We investigate the nature of continuous-time strategic interactions in public-goodsgames. In one set of treatments, four subjects make contribution decisions in continuous timewhile in another they make them only at discrete points of time. The effect of continuous timeis muted in public-goods games compared to simpler social dilemmas; the data suggest thatwidespread coordination problems are to blame. With a rich communication protocol, thesecoordination problems disappear and the median subject contributes fully to the public good,with no time decay. At the median, the same communication protocol is less than half aseffective in discrete time.

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Bibliographic Info

Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt5404914p.

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Date of creation: 04 Apr 2012
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Handle: RePEc:cdl:ucsbec:qt5404914p

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Keywords: Social and Behavioral Sciences; public goods; voluntary contribution mechanism; continuous-time games;

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Cited by:
  1. Bigoni, Maria & Casari, Marco & Skrzypacz, Andrzej & Spagnolo, Giancarlo, 2011. "Time Horizon and Cooperation in Continuous Time," Research Papers, Stanford University, Graduate School of Business 2088, Stanford University, Graduate School of Business.
  2. Charness, Gary & Brandts, Jordi & Ellman, Matthew, 2012. "Let’s talk: How communication affects contract design," University of California at Santa Barbara, Economics Working Paper Series, Department of Economics, UC Santa Barbara qt6z24s6rv, Department of Economics, UC Santa Barbara.
  3. Jordi Brandts & Gary Charness & Matthew Ellman, 2012. "Let's talk: How communication affects contract design," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 908.12, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

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