IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03116450.html
   My bibliography  Save this paper

Noncooperative Dynamic Contribution to a Public Project

Author

Listed:
  • Sébastien Rouillon

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

We consider a dynamic contribution game in which a group of agents collaborates to complete a public project. The agents exert efforts over time and get rewarded upon completion of the project, once the cumulative effort has reached a pre-specified level. We explicitly derive the cooperative solution and a noncooperative Markov-perfect Nash equilibrium. We characterize the set of socially efficient projects, i.e., projects that cooperative groups find worth completing. Comparing with the Markov-perfect Nash equilibrium, we find that noncooperative groups give up large socially efficient projects. Moreover, they take too much time to complete the projects that they undertake.

Suggested Citation

  • Sébastien Rouillon, 2018. "Noncooperative Dynamic Contribution to a Public Project," Post-Print hal-03116450, HAL.
    • Handle: RePEc:hal:journl:hal-03116450
    DOI: 10.1142/S0219198918400029
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Palfrey, Thomas R. & Rosenthal, Howard, 1984. "Participation and the provision of discrete public goods: a strategic analysis," Journal of Public Economics, Elsevier, vol. 24(2), pages 171-193, July.
    2. Leslie M. Marx & Steven A. Matthews, 2000. "Dynamic Voluntary Contribution to a Public Project," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(2), pages 327-358.
    3. T. Renee Bowen & George Georgiadis & Nicolas S. Lambert, 2019. "Collective Choice in Dynamic Public Good Provision," American Economic Journal: Microeconomics, American Economic Association, vol. 11(1), pages 243-298, February.
    4. Fershtman, Chaim & Nitzan, Shmuel, 1991. "Dynamic voluntary provision of public goods," European Economic Review, Elsevier, vol. 35(5), pages 1057-1067, July.
    5. Anat R. Admati & Motty Perry, 1991. "Joint Projects without Commitment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 259-276.
    6. Sebastian G. Kessing, 2007. "Strategic Complementarity in the Dynamic Private Provision of a Discrete Public Good," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(4), pages 699-710, August.
    7. Mark Bagnoli & Barton L. Lipman, 1989. "Provision of Public Goods: Fully Implementing the Core through Private Contributions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(4), pages 583-601.
    8. Bowen, T. Renee & Georgiadis, George & Lambert, Nicolas S., 2015. "Collective Choice in Dynamic Public Good Provision: Real versus Formal Authority," Research Papers 3346, Stanford University, Graduate School of Business.
    9. Cornes, Richard & Sandler, Todd, 1985. "The Simple Analytics of Pure Public Good Provision," Economica, London School of Economics and Political Science, vol. 52(205), pages 103-116, February.
    10. George Georgiadis, 2015. "Projects and Team Dynamics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(1), pages 187-218.
    11. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    12. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-598, September.
    13. Jakša Cvitanić & George Georgiadis, 2016. "Achieving Efficiency in Dynamic Contribution Games," American Economic Journal: Microeconomics, American Economic Association, vol. 8(4), pages 309-342, November.
    14. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329.
    15. Nitzan, Shmuel & Romano, Richard E., 1990. "Private provision of a discrete public good with uncertain cost," Journal of Public Economics, Elsevier, vol. 42(3), pages 357-370, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Georgiadis, George, 2017. "Deadlines and infrequent monitoring in the dynamic provision of public goods," Journal of Public Economics, Elsevier, vol. 152(C), pages 1-12.
    2. Menezes, Flavio M. & Monteiro, Paulo K. & Temimi, Akram, 2001. "Private provision of discrete public goods with incomplete information," Journal of Mathematical Economics, Elsevier, vol. 35(4), pages 493-514, July.
    3. May Elsayyad & Florian Morath, 2016. "Technology Transfers For Climate Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(3), pages 1057-1084, August.
    4. Tajika, Tomoya, 2020. "Contribute once! Full efficiency in a dynamic contribution game," Games and Economic Behavior, Elsevier, vol. 123(C), pages 228-239.
    5. Altınok, Ahmet & Yılmaz, Murat, 2018. "Dynamic voluntary contribution to a public project under time inconsistency," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 114-140.
    6. Huseyin Yildirim, 2023. "Who fares better in teamwork?," RAND Journal of Economics, RAND Corporation, vol. 54(2), pages 299-324, June.
    7. Cason, Timothy N. & Zubrickas, Robertas, 2019. "Donation-based crowdfunding with refund bonuses," European Economic Review, Elsevier, vol. 119(C), pages 452-471.
    8. Arbel, Yuval & Bar-El, Ronen & Schwarz, Mordechai E. & Tobol, Yossef, 2014. "Voluntary Contributions to the Establishment and Operation of Public Goods: Theory and Experimental Evidence," IZA Discussion Papers 8532, Institute of Labor Economics (IZA).
    9. Didier Laussel & Thomas R. Palfrey, 2003. "Efficient Equilibria in the Voluntary Contributions Mechanism with Private Information," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(3), pages 449-478, July.
    10. 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.
    11. Wang, Chengsi & Zudenkova, Galina, 2016. "Non-monotonic group-size effect in repeated provision of public goods," European Economic Review, Elsevier, vol. 89(C), pages 116-128.
    12. Colombo, Luca & Labrecciosa, Paola & Van Long, Ngo, 2022. "A dynamic analysis of international environmental agreements under partial cooperation," European Economic Review, Elsevier, vol. 143(C).
    13. Jakša Cvitanić & George Georgiadis, 2016. "Achieving Efficiency in Dynamic Contribution Games," American Economic Journal: Microeconomics, American Economic Association, vol. 8(4), pages 309-342, November.
    14. Colombo, Luca & Labrecciosa, Paola & Long, Ngo Van, 2019. "A Dynamic Analysis of Climate Change Mitigation with Endogenous Number of Contributors: Loose vs Tight Cooperation," Discussion paper series HIAS-E-92, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    15. Krasteva, Silvana & Yildirim, Huseyin, 2013. "(Un)Informed charitable giving," Journal of Public Economics, Elsevier, vol. 106(C), pages 14-26.
    16. George Georgiadis & Steven A. Lippman & Christopher S. Tang, 2014. "Project design with limited commitment and teams," RAND Journal of Economics, RAND Corporation, vol. 45(3), pages 598-623, September.
    17. Mark Bagnoli & Susan G. Watts, 2003. "Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 419-445, September.
    18. Ozerturk, Saltuk & Yildirim, Huseyin, 2021. "Credit attribution and collaborative work," Journal of Economic Theory, Elsevier, vol. 195(C).
    19. Serge-Christophe Kolm, 2008. "Paradoxes of the War on Poverty: Warm-Glows and Efficiency," IDEP Working Papers 0807, Institut d'economie publique (IDEP), Marseille, France, revised 18 Nov 2008.
    20. Krasteva, Silvana & Yildirim, Huseyin, 2014. "Reprint of: (Un)Informed charitable giving," Journal of Public Economics, Elsevier, vol. 114(C), pages 108-120.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03116450. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.