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An Experimental Dynamic Public Goods Game with Carryover

Author

Listed:
  • Kurtis Swope

    () (United States Naval Academy)

  • Pamela Schmitt

    () (United States Naval Academy)

  • John Cadigan

    () (Gettysburg College)

  • Patrick Wayland

    (United States Navy)

Abstract

We examine voluntary contributions in a two-stage public good experiment with ‘carryover.’ In two treatments, each subject’s second stage endowment is determined by the return from the public good in the first stage. We manipulate payoffs across these treatments so that, relative to our no-carryover baseline, earnings from either Nash play or Pareto Optimal play are held constant. The remaining two treatments maintain a constant endowment in each stage, but vary the marginal per capita return (MPCR) to contributions in the second stage. Our results indicate that carryover increases first stage contributions. Our implementation of carryover enables us to examine the effects of changing endowments and MPCR’s with a wider variety of parameter values than in the existing literature. Consistent with these studies, we find that MPCR and endowment effects are important determinants of subject contributions to the group account. While stage 1 contributions tend to increase in the presence of carryover, efficiency levels across both stages fall relative to the baseline due to the high potential payoffs from complete contribution in the second stage (due to higher endowments or MPCR levels).

Suggested Citation

  • Kurtis Swope & Pamela Schmitt & John Cadigan & Patrick Wayland, 2011. "An Experimental Dynamic Public Goods Game with Carryover," Departmental Working Papers 32, United States Naval Academy Department of Economics.
  • Handle: RePEc:usn:usnawp:32
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Grolleau , Gilles G. & Sutan, Angela & Vranceanu, Radu, 2013. "Taking the Well-being of Future Generations Seriously : Do People Contribute More to Intra-temporal or Inter-temporal Public Goods?," ESSEC Working Papers WP1313, ESSEC Research Center, ESSEC Business School.
    2. Grolleau, Gilles & Sutan, Angela & Vranceanu, Radu, 2016. "Do people contribute more to intra-temporal or inter-temporal public goods?," Research in Economics, Elsevier, vol. 70(1), pages 186-195.
    3. Marianna Baggio & Luigi Mittone, 2016. "Experience and History: An Experimental Approach to Generational Heterogeneity," International Journal of Applied Behavioral Economics (IJABE), IGI Global, vol. 5(4), pages 1-23, October.
    4. Tiezzi, Silvia & Xiao, Erte, 2016. "Time delay, complexity and support for taxation," Journal of Environmental Economics and Management, Elsevier, vol. 77(C), pages 117-141.
    5. Guererk, Oezguer & Rockenbach, Bettina & Wolff, Irenaeus, 2010. "The effects of punishment in dynamic public-good games," MPRA Paper 22097, University Library of Munich, Germany.
    6. Tiezzi, Silvia & Xiao, Erte, 2013. "Time Delay and Support for Taxation," MPRA Paper 51233, University Library of Munich, Germany.
    7. Gilles Grolleau & Angela Sutan & Radu Vranceanu, 2013. "Taking the well-being of future generations seriously: do people contribute more to intra-temporal or inter-temporal public goods?," Working Papers hal-01594105, HAL.
    8. repec:hal:journl:hal-00866970 is not listed on IDEAS
    9. Marianna Baggio & Luigi Mittone, 2015. "Grandparents Matter: Perspectives on Intergenerational Altruism. An Experiment on Family Dynamic Spillovers in Public Goods Games," CEEL Working Papers 1502, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    10. repec:eee:pubeco:v:150:y:2017:i:c:p:1-13 is not listed on IDEAS

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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