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Path dependence in public-good games

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  • Lisa Bruttel
  • Tim Friehe

Abstract

This paper presents experimental evidence that contributions to a public good can be path-dependent for a limited time span. We study a repeated linear public-good game with punishment opportunities. Our data shows that subjects who had experienced a higher marginal return on public-good contributions in rounds 1-10 contributed more to the public good in rounds 11 and 12, even though they faced the same marginal return as the control group in these later rounds. In contrast, di erences in contributions were not significant when comparing subjects bearing the same current costs of punishment points, but having had different costs in the past.

Suggested Citation

  • Lisa Bruttel & Tim Friehe, 2011. "Path dependence in public-good games," TWI Research Paper Series 67, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    • Handle: RePEc:twi:respas:0067
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    References listed on IDEAS

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    Keywords

    public-good game; team; punishment; path dependence; experiment;
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