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We extend the standard public good provision model to allow players to either like or dislike the public characteristic. Those who dislike it are able to take actions to reduce its level. We present conditions under which the existence of a unique noncooperative equilibrium is retained, and...
Persistent link: https://www.econbiz.de/10009571064
Quasilinear preferences on a public good and a numeraire good are limits of preferences where both goods are normal. The set of equilibria of the voluntary contribution (or private provision) game is easily characterized under quasilinearity by: top valuators aggregately contribute their common...
Persistent link: https://www.econbiz.de/10009506418
-efficient allocation in backward elimination of weakly dominated strategies (BEWDS), limit logit agent quantal response equilibrium …
Persistent link: https://www.econbiz.de/10014157950
seems to act as a powerful focal point: the final outcome is insignificantly different from the initial allocation. Warm …
Persistent link: https://www.econbiz.de/10009559239
We study the stability of voluntary cooperation in response to varying group growth rates. Using a laboratory public-good game, we construct a situation where increasing group size yields potential efficiency gains, but only with sustained cooperation. We then study the effect of exogenously...
Persistent link: https://www.econbiz.de/10009748765
Explaining the evolution and maintenance of cooperation among unrelated individuals is one of the fundamental problems in biology and the social sciences. Recent experimental evidence suggests that altruistic punishment is an important mechanism to maintain cooperation among humans. In this...
Persistent link: https://www.econbiz.de/10011343948
Persistent link: https://www.econbiz.de/10003807183
Previous research indicates that risky and uncertain marginal returns from the public good significantly lower contributions. This paper presents experimental results illustrating that the effects of risk and uncertainty depend on the employed parameterization. Specifically, if the value of the...
Persistent link: https://www.econbiz.de/10003887174
decision by making an unconditional transfer. An efficient allocation requires the Lindahl property: the sum of the two …
Persistent link: https://www.econbiz.de/10008806532
This paper examines the questions of who participates in the provision of a public good through the voluntary participation of agents in the presence of strong complementarity between a public good and a private good. We show that the greater the initial endowment of the private good that agents...
Persistent link: https://www.econbiz.de/10009427088