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Endogenous Move Structure and Volunatary Provision of Public Goods: Theory and Experiment

  • Daniele Nosenzo

    (University of Nottingham)

  • Martin Sefton

    ()

    (University of Nottingham)

In this paper we examine voluntary contributions to a public good, embedding Varian (1994)’s voluntary contribution game in extended games that allow players to choose the timing of their contributions. We show that predicted outcomes are sensitive to the structure of the extended game, and also to the extent to which players care about payoff inequalities. We then report a laboratory experiment based on these extended games. We find that behavior is similar in the two extended games: subjects avoid the detrimental move order of Varian’s model, where a person with a high value of the public good commits to a low contribution, and instead players tend to delay contributions. These results suggest that commitment opportunities may be less damaging to public good provision than previously thought.

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File URL: http://www.nottingham.ac.uk/cedex/documents/papers/2010-14.pdf
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Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2010-14.

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Date of creation: Aug 2010
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Handle: RePEc:not:notcdx:2010-14
Contact details of provider: Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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Web page: http://www.nottingham.ac.uk/economics/cedex/

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