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On Delays in Project Completion with Cost Reduction: An Experiment

Author

Listed:
  • Shubhro Sarkar

    () (Indira Gandhi Institute of Development Research, Gen. A.K. Vaidya Marg, Goregaon East, Mumbai, 400065, India)

  • Anthony M. Kwasnica

    () (Smeal College of Business Administration, Pennsylvania State University, University Park, PA 16802, USA)

Abstract

We examine the voluntary provision of a public project via binary contributions when contributions may be made over multiple periods. In many situations, early contributors are likely to pay a higher cost than those who wait. We show that in such circumstances the provision of the project always involves delay. Because this game involves coordination on complex, dynamic strategies in the face of asymmetries in payoffs, we examine behavior in the laboratory.

Suggested Citation

  • Shubhro Sarkar & Anthony M. Kwasnica, 2011. "On Delays in Project Completion with Cost Reduction: An Experiment," Southern Economic Journal, Southern Economic Association, vol. 77(3), pages 557-584, January.
  • Handle: RePEc:sej:ancoec:v:77:3:y:2011:p:557-584
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    File URL: http://dx.doi.org/10.4284/sej.2011.77.3.557
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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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