IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/7884.html

An auction mechanism for public goods provision: an experimental study

Author

Listed:
  • Hichri, Pavel
  • Hichri, Walid

Abstract

We experiment a new mechanism for the provision of a discrete public good: in a fixed period individuals can contribute several times; at any moment they can see the total amount collected; at the end of the period, the public good is provided if the amount covers the cost. We find that the ability of the mechanism to provide efficiently the public good decreases with the amount of the provision cost.

Suggested Citation

  • Hichri, Pavel & Hichri, Walid, 2008. "An auction mechanism for public goods provision: an experimental study," MPRA Paper 7884, University Library of Munich, Germany, revised 2008.
    • Handle: RePEc:pra:mprapa:7884
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/7884/1/MPRA_paper_7884.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chan, Kenneth S. & Mestelman, Stuart & Muller, R. Andrew, 2008. "Voluntary Provision of Public Goods," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 88, pages 831-835, Elsevier.
    2. 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.
    3. Kenneth Chan & Stuart Mestelman & Robert Moir & R. Muller, 1999. "Heterogeneity and the Voluntary Provision of Public Goods," Experimental Economics, Springer;Economic Science Association, vol. 2(1), pages 5-30, August.
    4. Rondeau, Daniel & D. Schulze, William & Poe, Gregory L., 1999. "Voluntary revelation of the demand for public goods using a provision point mechanism," Journal of Public Economics, Elsevier, vol. 72(3), pages 455-470, June.
    5. 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.
    6. 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.
    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. Na Li Dawson & Kathleen Segerson, 2008. "Voluntary Agreements with Industries: Participation Incentives with Industry-Wide Targets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 97-114.
    2. Fangfang Tan, 2008. "Punishment in a Linear Public Good Game with Productivity Heterogeneity," De Economist, Springer, vol. 156(3), pages 269-293, September.
    3. Glenn Bush & Nick Hanley & Mirko Moro & Daniel Rondeau, 2013. "Measuring the Local Costs of Conservation: A Provision Point Mechanism for Eliciting Willingness to Accept Compensation," Land Economics, University of Wisconsin Press, vol. 89(3), pages 490-513.
    4. Lisa Anderson & Jennifer Mellor & Jeffrey Milyo, 2006. "Induced heterogeneity in trust experiments," Experimental Economics, Springer;Economic Science Association, vol. 9(3), pages 223-235, September.
    5. Lisa R. Anderson & Jennifer M. Mellor & Jeffrey Milyo, 2003. "Inequality, Group Cohesion, and Public Good Provision: An Experimental Analysis," Working Papers 0308, Harris School of Public Policy Studies, University of Chicago.
    6. Guererk, Oezguer & Rockenbach, Bettina & Wolff, Irenaeus, 2010. "The effects of punishment in dynamic public-good games," MPRA Paper 22097, University Library of Munich, Germany.
    7. Stuart Mestelman, 2011. "The Voluntary Provision of Public Goods When Individuals are Heterogeneous with Respect to Income and Preferences and Equity May Matter," Department of Economics Working Papers 2011-05, McMaster University.
    8. Rose, Steven K. & Clark, Jeremy & Poe, Gregory L. & Rondeau, Daniel & Schulze, William D., 2002. "The private provision of public goods: tests of a provision point mechanism for funding green power programs," Resource and Energy Economics, Elsevier, vol. 24(1-2), pages 131-155, February.
    9. Zhi Li & Dongsheng Chen & Pengfei Liu, 2023. "Assurance payments on the coordination of threshold public goods provision: An experimental investigation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(2), pages 407-436, April.
    10. Balafoutas, Loukas & Kocher, Martin G. & Putterman, Louis & Sutter, Matthias, 2013. "Equality, equity and incentives: An experiment," European Economic Review, Elsevier, vol. 60(C), pages 32-51.
    11. Louis Lévy-Garboua & Claude Montmarquette & Marie Claire Villeval, 2005. "Individual Responsibility and the Funding of Collective Goods," Post-Print halshs-00176697, HAL.
    12. Reischmann, Andreas, 2016. "Conditional Contribution Mechanisms for the Provision of Public Goods in Dynamic Settings - Theory and Experimental Evidence," VfS Annual Conference 2016 (Augsburg): Demographic Change 145613, Verein für Socialpolitik / German Economic Association.
    13. Francesco Bripi & Daniela Grieco, 2023. "Participatory incentives," Experimental Economics, Springer;Economic Science Association, vol. 26(4), pages 813-849, September.
    14. Luca Corazzini & Marco Faravelli & Luca Stanca, 2010. "A Prize To Give For: An Experiment on Public Good Funding Mechanisms," Economic Journal, Royal Economic Society, vol. 120(547), pages 944-967, September.
    15. Park In-Uck, 2004. "A Simple Inducement Scheme to Overcome Adoption Externalities," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 4(1), pages 1-26, June.
    16. Reuben, Ernesto & Riedl, Arno, 2013. "Enforcement of contribution norms in public good games with heterogeneous populations," Games and Economic Behavior, Elsevier, vol. 77(1), pages 122-137.
    17. Werner Güth & Anastasios Koukoumelis & M. Vittoria Levati, 2011. ""One man's meat is another man's poison." An experimental study of voluntarily providing public projects that raise mixed feelings," Jena Economics Research Papers 2011-034, Friedrich-Schiller-University Jena.
    18. Ledyard, John O., "undated". "Public Goods: A Survey of Experimental Research," Working Papers 861, California Institute of Technology, Division of the Humanities and Social Sciences.
    19. Robbett, Andrea, 2016. "Sustaining cooperation in heterogeneous groups," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PA), pages 121-138.
    20. Reischmann, Andreas & Oechssler, Joerg, 2018. "The Binary Conditional Contribution Mechanism for public good provision in dynamic settings — Theory and experimental evidence," Journal of Public Economics, Elsevier, vol. 159(C), pages 104-115.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:7884. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.