Interior collective optimum in a voluntary contribution to a public-goods game
This study shows a public good experiment with four different treatments. The payoff function is chosen so that the Nash equilibrium (NE) and the collective optimum (CO) are both in the interior of the strategy space. This study tries to test the effect of varying the level of the collective optimum, which changes the 'social dilemma', involved in the decision as to how much to contribute to the public good. The results show that contributions increase with the level of the interior CO. There is overcontribution in comparison to the NE and undercontribution in comparison to the CO. But contributions are as far from the CO as the level of the former increases. An overcontribution index that takes into account the effective contribution relative to both the NE and the CO, shows that subjects adopt a constant behaviour while passing from one treatment to another: they contribute a constant share of the CO.
Volume (Year): 11 (2004)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEL20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEL20|
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.:
- Chan, Kenneth S. & Godby, Rob & Mestelman, Stuart & Muller, R. Andrew, 1997. "Equity theory and the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 349-364, March.
- Anderson, Simon P. & Goeree, Jacob K. & Holt, Charles A., 1998. "A theoretical analysis of altruism and decision error in public goods games," Journal of Public Economics, Elsevier, vol. 70(2), pages 297-323, November.
- Palfrey, Thomas R & Prisbrey, Jeffrey E, 1997. "Anomalous Behavior in Public Goods Experiments: How Much and Why?," American Economic Review, American Economic Association, vol. 87(5), pages 829-46, December.
- Sefton, Martin & Steinberg, Richard, 1996. "Reward structures in public good experiments," Journal of Public Economics, Elsevier, vol. 61(2), pages 263-287, August.
- van Dijk, Frans & van Winden, Frans, 1997. "Dynamics of social ties and local public good provision," Journal of Public Economics, Elsevier, vol. 64(3), pages 323-341, June.
When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:11:y:2004:i:3:p:135-140. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.