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The Dynamic Free Rider Problem: A Laboratory Study

Battaglini, Marco and Nunnari, Salvatore and Palfrey, Thomas R. (2016) The Dynamic Free Rider Problem: A Laboratory Study. American Economic Journal: Microeconomics, 8 (4). pp. 268-308. ISSN 1945-7669. http://resolver.caltech.edu/CaltechAUTHORS:20161202-123810870

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Abstract

We report the results of an experiment that investigates free riding in the accumulation of durable public goods. We consider economies with reversibility, where contributions can be positive or negative; and economies with irreversibility, where contributions are nonnegative. Aggregate outcomes support the qualitative predictions of the Markov Perfect Equilibria (MPE) characterized in Battaglini, Nunnari, and Palfrey (2014): steady state levels of public good are lower with reversibility than irreversibility; accumulation is inefficiently slow; and the public good is under-provided in both regimes. On the other hand, public good levels are higher than MPE, and some evidence of history dependence is detected.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://dx.doi.org/10.1257/mic.20150126DOIArticle
https://www.aeaweb.org/articles?id=10.1257/mic.20150126PublisherArticle
http://resolver.caltech.edu/CaltechAUTHORS:20160301-135235371Related ItemWorking Paper
Additional Information:© 2016 American Economic Association. We are grateful for comments from a number of seminar audiences at universities and conferences. We thank Lydia Mechtenberg and Steven Matthews for valuable comments. Battaglini gratefully acknowledges financial support from NSF (SES-0418150) and the Alfred P. Sloan Foundation. Palfrey gratefully acknowledges financial support of grants from the National Science Foundation (SES-0962802, SES-1426560), the Gordon and Betty Moore Foundation (SES-1158), and the Russell Sage Foundation. Dustin Beckett and Anselm Rink provided valuable research assistance.
Funders:
Funding AgencyGrant Number
NSFSES-0418150
Alfred P. Sloan FoundationUNSPECIFIED
NSFSES-0962802
NSFSES-1426560
Gordon and Betty Moore FoundationSES-1158
Russell Sage FoundationUNSPECIFIED
Classification Code:JEL Classification: C91 Laboratory, Individual Behavior; H41 Public Goods
Record Number:CaltechAUTHORS:20161202-123810870
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20161202-123810870
Official Citation:Battaglini, Marco, Salvatore Nunnari and Thomas R. Palfrey. 2016. "The Dynamic Free Rider Problem: A Laboratory Study." American Economic Journal: Microeconomics, 8(4): 268-308
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:72527
Collection:CaltechAUTHORS
Deposited By: Tony Diaz
Deposited On:02 Dec 2016 22:38
Last Modified:02 Dec 2016 22:38

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