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Unraveling Public Good Games: The Role of Priors

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  • Brañas Garza, Pablo
  • Espinosa Alejos, María Paz

Abstract

This paper provides experimental evidence on how players predict end game effects in a linear public good game. Our regression analysis yields a measure of the relative importance of priors and signals on subjects\' beliefs on contributions and allow us to conclude that, firstly, the weight of the signal is relatively unimportant, while priors have a large weight and, secondly, priors are the same for all periods. Hence, subjects do not expect end game effects and there is very little updating of beliefs.

Suggested Citation

  • Brañas Garza, Pablo & Espinosa Alejos, María Paz, 2010. "Unraveling Public Good Games: The Role of Priors," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:6474
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    Cited by:

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    2. Maho Nakagawa & Mathieu Lefebvre & Anne Stenger, 2022. "Long-lasting effects of incentives and social preference: A public goods experiment," Post-Print hal-03777681, HAL.
    3. Coralio Ballester & Pablo Brañas-Garza & María Paz Espinosa, 2008. "Peer effects in public contributions: theory and experimental evidence," ThE Papers 08/04, Department of Economic Theory and Economic History of the University of Granada..
    4. Ananish Chaudhuri, 2018. "Belief Heterogeneity and the Restart Effect in a Public Goods Game," Games, MDPI, vol. 9(4), pages 1-20, November.
    5. Pablo Brañas-Garza & Olusegun A. Oyediran & M.Fernanda Rivas, 2010. "An experimental test of prejudice about foreign people," ThE Papers 10/04, Department of Economic Theory and Economic History of the University of Granada..

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    More about this item

    Keywords

    public good game; end game effect; beliefs;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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