Showing 1 - 10 of 69
This paper presents an analytically tractable dynamic game in which players jointly use a resource. The resource replenishes fully but collapses should total use exceed a threshold in any one period. The initial level of use is known to be safe. If it is at all optimal to increase resource use,...
Persistent link: https://www.econbiz.de/10011298741
Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each...
Persistent link: https://www.econbiz.de/10001771994
This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind … ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also … the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental …
Persistent link: https://www.econbiz.de/10001590591
The formation of social ties is examined in an experimental study of voluntary public good provision. The experimental design consists of three parts. In the first part the value orientation (attitude to a generalized other) is measured. In the second part couples play a multi-period public good...
Persistent link: https://www.econbiz.de/10001474389
The paper considers a two-country model of overlapping generations economies with intergenerational transfers carried out in the form of bequest and investment in human capital. The authors examine in competitive equlibrium the optimal provision of education with and without capital markets...
Persistent link: https://www.econbiz.de/10001489391
A well known result in the tax competition literature is that tax rates are set too low in the Nash equilibrium to finance an efficient level of public consumption goods. In this model we introduce international spillovers in public goods provision and show that such spillovers reduce, and in...
Persistent link: https://www.econbiz.de/10001554661
We introduce democratic mechanisms where individual utilities are not observable by other people at the legislative stage. We show that the combination of three rules can yield e±cient provision of public projects: first, flexible and double majority rules where the size of the majority depends...
Persistent link: https://www.econbiz.de/10001689878
In public good games, voluntary contributions tend to start of high and decline as the game is repeated. If high contributors are matched, however, contributions tend to stay high. We propose a formalization predicting that high contributors will selfselect into groups committed to charitable...
Persistent link: https://www.econbiz.de/10003826571
In social dilemmas, there is tension between cooperation that promotes the common good and the pursuit of individual interests. International climate change negotiations provide one example: although abatement costs are borne by individual countries, the benefits are shared globally. We study a...
Persistent link: https://www.econbiz.de/10009536466
Are the probable future negative effects of climate change an argument for decreasing the discount rate to promote the interests of future generations? The analysis of the present paper suggests that such stronger intergenerational altruism might undermine future wellbeing if not complemented by...
Persistent link: https://www.econbiz.de/10011440402