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Noncooperative Dynamic Contribution to a Public Project

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  • 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
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-03116450
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