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On Sequential and Simultaneous Contributions under Incomplete Information

Author

Listed:
  • Parimal Bag

    (National University of Singapore, Singapore.)

  • Santanu Roy

    (Southern Methodist University, Dallas, Texas.)

Abstract

Under incomplete information about (independent) private valuations of a public good, we establish sufficient conditions under which, despite the incentive to free ride on future contributors, the expected total amount of voluntary contributions is higher when agents contribute sequentially (observing prior contributions) rather than simultaneously. We establish this in a conventional framework with quasi-linear utility where agents care only about the total provision of the public good (rather than individual contribution levels) and there is no non-convexity in provision of the public good. We allow for arbitrary number of agents and fairly general distribution of types.

Suggested Citation

  • Parimal Bag & Santanu Roy, 2008. "On Sequential and Simultaneous Contributions under Incomplete Information," Departmental Working Papers 0805, Southern Methodist University, Department of Economics, revised Nov 2008.
  • Handle: RePEc:smu:ecowpa:0805
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    References listed on IDEAS

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    Cited by:

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    2. Anwesha Banerjee & Nicolas Gravel, 2020. "Contribution to a public good under subjective uncertainty," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 473-500, June.
    3. Jack, B. Kelsey & Recalde, María P., 2015. "Leadership and the voluntary provision of public goods: Field evidence from Bolivia," Journal of Public Economics, Elsevier, vol. 122(C), pages 80-93.
    4. Russo, Giuseppe & Senatore, Luigi, 2012. "A note on contribution games with loss functions," Economics Letters, Elsevier, vol. 115(2), pages 211-214.
    5. Richárd Kicsiny, 2017. "Solution for a class of closed-loop leader-follower games with convexity conditions on the payoffs," Annals of Operations Research, Springer, vol. 253(1), pages 405-429, June.
    6. 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.
    7. Ferrari, Giorgio & Riedel, Frank & Steg, Jan-Henrik, 2014. "Continuous-Time Public Good Contribution under Uncertainty," Center for Mathematical Economics Working Papers 485, Center for Mathematical Economics, Bielefeld University.
    8. Matthew Ellman & Sjaak Hurkens, 2014. "Optimal Crowdfunding Design," Working Papers 14-21, NET Institute.
    9. Miriam Sinn, 2013. "Sequential Group Lending: A Mechanism to Raise the Repayment Rate in Microfinance," Economica, London School of Economics and Political Science, vol. 80(318), pages 326-344, April.
    10. Yifen Mu, 2014. "Inverse Stackelberg Public Goods Game with Multiple Hierarchies Under Global and Local Information Structures," Journal of Optimization Theory and Applications, Springer, vol. 163(1), pages 332-350, October.
    11. Giorgio Ferrari & Frank Riedel & Jan-Henrik Steg, 2013. "Continuous-Time Public Good Contribution under Uncertainty: A Stochastic Control Approach," Papers 1307.2849, arXiv.org, revised Oct 2015.
    12. Murat Yilmaz, 2010. "Auctioning a Discrete Public Good under Incomplete Information," Working Papers 2010/14, Bogazici University, Department of Economics.
    13. Chang Jen-Wen, 2020. "Should the Talk be Cheap in Contribution Games?," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 20(2), pages 1-16, June.
    14. Senatore, L, 2011. "Public Good Provision with Convex Costs," MPRA Paper 36984, University Library of Munich, Germany.
    15. Sikdar, Shiva, 2015. "On efforts in teams with stereotypes," Economics Letters, Elsevier, vol. 137(C), pages 203-207.

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    More about this item

    Keywords

    Contribution games; public good; incomplete information.;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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