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Dynamic voluntary contributions to a discrete public good: Experimental evidence

Author

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  • Diev, P.
  • Hichri, W.

Abstract

We experiment a mechanism for the provision of a discrete public good where individuals are allowed to upwards their contribution during a fixed time interval. Experimental evidence shows that subjects increase their contributions in order to finance the cost of the good. The public good is financed more frequently when its cost is low relative to the social ability to pay.
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Suggested Citation

  • Diev, P. & Hichri, W., 2008. "Dynamic voluntary contributions to a discrete public good: Experimental evidence," Working papers 214, Banque de France.
  • Handle: RePEc:bfr:banfra:214
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    References listed on IDEAS

    as
    1. M. Vittoria Levati & Tibor Neugebauer, 2004. "An Application of the English Clock Market Mechanism to Public Goods Games," Experimental Economics, Springer;Economic Science Association, vol. 7(2), pages 153-169, June.
    2. Leslie M. Marx & Steven A. Matthews, 2000. "Dynamic Voluntary Contribution to a Public Project," Review of Economic Studies, Oxford University Press, vol. 67(2), pages 327-358.
    3. Werner Güth & Maria Vittoria Levati & Andreas Stiehler, "undated". "Privately Contributing to Public Goods over Time - An Experimental Study -," Papers on Strategic Interaction 2002-01, Max Planck Institute of Economics, Strategic Interaction Group.
    4. Dorsey, Robert E, 1992. "The Voluntary Contributions Mechanism with Real Time Revisions," Public Choice, Springer, vol. 73(3), pages 261-282, April.
    5. Fershtman, Chaim & Nitzan, Shmuel, 1991. "Dynamic voluntary provision of public goods," European Economic Review, Elsevier, vol. 35(5), pages 1057-1067, July.
    6. W. Hichri, 2004. "Interior collective optimum in a voluntary contribution to a public-goods game," Applied Economics Letters, Taylor & Francis Journals, vol. 11(3), pages 135-140.
    7. Gradstein, Mark, 1992. "Time Dynamics and Incomplete Information in the Private Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 581-597, June.
    8. Anat R. Admati & Motty Perry, 1991. "Joint Projects without Commitment," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 259-276.
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    Cited by:

    1. Marco Battaglini & Salvatore Nunnari & Thomas R. Palfrey, 2016. "The Dynamic Free Rider Problem: A Laboratory Study," American Economic Journal: Microeconomics, American Economic Association, vol. 8(4), pages 268-308, November.

    More about this item

    Keywords

    Public Goods ; Experiments ; Voluntary contributions ; Dynamic contributions.;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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