 Interior Collective Optimum in a Volontary Contribution to a Public-Goods Game: An Experimental ApproachMPRA Paper from University Library of Munich, Germany Abstract: We run a public good experiment with four different treatments. The payoff function is chosen such that the Nash equilibrium (NE) and the collective optimum (CO) are both in the interior of the strategy space. We try to test the effect of varying the level of the collective optimum, which changes the "social dilemma", involved in the decision as to how much to contribute to the public good . Our results show that contributions increase with the level of the interior CO. There is overcontribution in comparison to the NE and under contribution in comparison to the CO. But contributions are as far from the CO as the level of this former gets high. An overcontribution index that takes into account the effective contribution relative to both, the NE and the CO, shows that subjects adopt a constant behavior while passing from one treatment to another: they contribute a constant share of the CO. Keywords: Public Goods; Experiments; Interior Solutions; Social Dilemma (search for similar items in EconPapers) Published in Applied Economics Letters 3.11(2004): pp. 135-140 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7883 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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