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Unraveling Public Good Games

Author

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  • Pablo Brañas-Garza

    (GLOBE, Universidad de Granada, Granada 18071, Spain)

  • Maria Paz Espinosa

    (BRIDGE, Universidad del País Vasco, Bilbao 48015, Spain)

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 allows us to conclude that, first, the weight of the signal is relatively unimportant, while priors have a large weight and, second, priors are the same for all periods. Hence, subjects do not expect end-game effects and there is very little updating of beliefs. We argue that the sustainability of cooperation is related to this pattern of belief formation.

Suggested Citation

  • Pablo Brañas-Garza & Maria Paz Espinosa, 2011. "Unraveling Public Good Games," Games, MDPI, Open Access Journal, vol. 2(4), pages 1-18, November.
  • Handle: RePEc:gam:jgames:v:2:y:2011:i:4:p:434-451:d:14898
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    Cited by:

    1. Ananish Chaudhuri, 2018. "Belief Heterogeneity and the Restart Effect in a Public Goods Game," Games, MDPI, Open Access Journal, vol. 9(4), pages 1-20, November.
    2. Elsenbroich, Corinna & Payette, Nicolas, 2020. "Choosing to cooperate: Modelling public goods games with team reasoning," Journal of choice modelling, Elsevier, vol. 34(C).
    3. 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..
    4. 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..

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    More about this item

    Keywords

    public good games; end-game effects; beliefs; experiments;
    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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