Coming and going: Experiments on endogenous group sizes for excludable public goods
When a public good is congestible, individuals wanting to provide the public good face challenges in forming groups of optimal size, selecting the members of the group, and encouraging members to contribute for the public good. We conduct a series of experiments in which subjects form groups using three different entry and exit rules. The experimental results are analyzed in terms of group size, the level of public good provision, social efficiency, congestion and group stability. We find that entry restriction improves the average earnings for some individuals compared to free entry/exit or restricted exit. For a given group size, individuals under the restricted entry rule contribute more for the provision of the collective good. Also, for a given average contribution level of group members, subjects under the restricted entry rule suffer less from the congestion problem and are better able to form groups of sizes closer to the optimal.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Raquel Fernandez & Richard Rogerson, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 135-164.
- Nechyba, Thomas J, 1997.
"Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion,"
Journal of Political Economy,
University of Chicago Press, vol. 105(2), pages 351-84, April.
- Thomas J. Nechyba, 1996. "Local Property and State Income Taxes: The Role of Interjurisdictional Competition and Collusion," NBER Working Papers 5419, National Bureau of Economic Research, Inc.
- BARHAM, Vicky & BOADWAY, Robin & MARCHAND, Maurice & PESTIEAU, Pierre, 1992.
"Volunteer work and club size: Nash equilibrium and optimality,"
CORE Discussion Papers
1992040, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Barham, Vicky & Boadway, Robin & Marchand, Maurice & Pestieau, Pierre, 1997. "Volunteer work and club size: Nash equilibrium and optimality," Journal of Public Economics, Elsevier, vol. 65(1), pages 9-22, July.
- Barham, V. & Boadway, R. & Marchand, M. & Pestieau, P., . "Volunteer work and club size: Nash equilibrium and optimality," CORE Discussion Papers RP 1277, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Talbot Page & Louis Putterman & Bulent Unel, 2005.
"Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency,"
Royal Economic Society, vol. 115(506), pages 1032-1053, October.
- Talbot Page & Louis Putterman & Bulent Unel, 2002. "Voluntary Association in Public Goods Experiments: Reciprocity, Mimicry and Efficiency," Working Papers 2002-19, Brown University, Department of Economics.
- Goodspeed, Timothy J., 1989. "A re-examination of the use of ability to pay taxes by local governments," Journal of Public Economics, Elsevier, vol. 38(3), pages 319-342, April.
- Coricelli, Giorgio & Fehr, Dietmar & Fellner, Gerlinde, 2004.
"Partner Selection in Public Goods Experiments,"
151, Institute for Advanced Studies.
- Matthias Cinyabuguma & Talbot Page & Louis Putterman, 2004.
"Cooperation Under the Threat of Expulsion in a Public Goods Experiment,"
2004-05, Brown University, Department of Economics.
- Cinyabuguma, Matthias & Page, Talbot & Putterman, Louis, 2005. "Cooperation under the threat of expulsion in a public goods experiment," Journal of Public Economics, Elsevier, vol. 89(8), pages 1421-1435, August.
- Sethi, Rajiv, 1996. "Evolutionary stability and social norms," Journal of Economic Behavior & Organization, Elsevier, vol. 29(1), pages 113-140, January.
- Henrich, Joseph, 2004. "Cultural group selection, coevolutionary processes and large-scale cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 53(1), pages 3-35, January.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Karl-Martin Ehrhart & Claudia Keser, 1999. "Mobility and Cooperation: On the Run," CIRANO Working Papers 99s-24, CIRANO.
- Rudolf Schuessler, 1989. "Exit Threats and Cooperation under Anonymity," Journal of Conflict Resolution, Peace Science Society (International), vol. 33(4), pages 728-749, December.
- Ehrhart, Karl-Martin & Keser, Claudia, 1999. "Mobility and cooperation: on the run," Sonderforschungsbereich 504 Publications 99-69, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- T. K. Ahn & R. Mark Isaac & Timothy C. Salmon, 2008. "Endogenous Group Formation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(2), pages 171-194, 04.
- Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 828-58, August.
- Gintis, Herbert, 2004. "The genetic side of gene-culture coevolution: internalization of norms and prosocial emotions," Journal of Economic Behavior & Organization, Elsevier, vol. 53(1), pages 57-67, January.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:93:y:2009:i:1-2:p:336-351. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.