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A Dynamic Analysis of the Evolution of Conventions in a Public Goods Experiment with Intergenerational Advice

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  • Chaudhuri, Ananish
  • Maitra, Pushkar
  • Graziano, Sara

Abstract

In this paper we analyse contributions to a public good within an inter-generational framework where at the end of each session one generation of subjects leave advice for the succeeding generation via free form messages. Such advice can be private (advice left by one player in generation t is given only to her immediate successor in generation t +1) or public (advice left by players of generation t is made available to all members of generation t +1). We estimate a panel regression model that enables us to understand the dynamics of the process better and to highlight the learning that occurs over time. Our estimation results show that contributions in any period depend crucially on contributions in the previous period and on the group average in the previous period - more specifically whether a subject's own contribution in the previous period fell above or below the group average. We find that in the public advice treatment when a subject's contribution fell below the group average in the previous period there is a tendency on the part of that subject to increase contributions in the next period.

Suggested Citation

  • Chaudhuri, Ananish & Maitra, Pushkar & Graziano, Sara, 2003. "A Dynamic Analysis of the Evolution of Conventions in a Public Goods Experiment with Intergenerational Advice," Working Papers 152, Department of Economics, The University of Auckland.
    • Handle: RePEc:auc:wpaper:152
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    File URL: http://hdl.handle.net/2292/152
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    References listed on IDEAS

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    Cited by:

    1. Norman Frohlich & Joe Oppenheimer, 2006. "Skating on Thin Ice," Journal of Theoretical Politics, , vol. 18(3), pages 235-266, July.

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    More about this item

    Keywords

    Voluntary contributions mechanism; Economics;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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