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Investing in institutions for cooperation

Author

Listed:
  • Alexander Smith

    () (Worcester Polytechnic Institute (WPI))

  • Xi Wen

    () (Worcester Polytechnic Institute (WPI))

Abstract

Abstract We examine the effects of endogenizing contribution productivity in a repeated public good game. In our experimental treatment, subjects collectively decide (by voting) how much to invest in augmenting the technology for producing the public good, and subsequently make individual voluntary contributions to provision. In the control, contribution productivity is exogenous. Contributions in the two treatments are similar.

Suggested Citation

  • Alexander Smith & Xi Wen, 2017. "Investing in institutions for cooperation," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 3(1), pages 75-87, July.
  • Handle: RePEc:spr:jesaex:v:3:y:2017:i:1:d:10.1007_s40881-017-0033-2
    DOI: 10.1007/s40881-017-0033-2
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    References listed on IDEAS

    as
    1. Michael Kosfeld & Akira Okada & Arno Riedl, 2009. "Institution Formation in Public Goods Games," American Economic Review, American Economic Association, vol. 99(4), pages 1335-1355, September.
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    7. Alexander Smith, 2013. "Estimating the causal effect of beliefs on contributions in repeated public good games," Experimental Economics, Springer;Economic Science Association, vol. 16(3), pages 414-425, September.
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    16. Kingsley, David C. & Brown, Thomas C., 2016. "Endogenous and costly institutional deterrence in a public good experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 62(C), pages 33-41.
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    More about this item

    Keywords

    Public good games; Endogenous institutions; Production technology; Contribution productivity;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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