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What are the equilibria in linear public-good experiments?

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  • Irenaeus Wolff

Abstract

Most social-preference models have been tailored to yield only a full-defection equilibrium in one-shot linear public-good situations. This paper determines the Nash-equilibrium sets that result from experiment participants’ elicited preferences. The data show that multiple equilibria are relatively frequent even in a standard three-player setting. In this perspective, the common finding of close-to-omnilateral defection at the end of repeated public-good games is surprising and raises the question of why the dynamics of play seem to select this equilibrium out of the existing equilibria.

Suggested Citation

  • Irenaeus Wolff, 2016. "What are the equilibria in linear public-good experiments?," TWI Research Paper Series 105, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    • Handle: RePEc:twi:respas:0105
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    Keywords

    Public good; social dilemma; Nash-equilibrium; conditional cooperation; social preferences;
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