Testing static game theory with dynamic experiments: A case study of public goods

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Testing static game theory with dynamic experiments: A case study of public goods

Game theory provides predictions of behavior in many one-shot games. On the other hand, most experimenters usually play repeated games with subjects, to provide experience. To avoid subjects rationally employing strategies that are appropriate for the repeated game, experimenters typically employ a “random strangers” design in which subjects are randomly paired with others in the session. There...

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Analysis of Public Goods Experiments Using Dynamic Panel Regression Models*

Laboratory experiments on the provision of public goods follow each subject over time as he interacts with a small group of others, deciding in each period how much of an initial allocation to contribute to a group good that yields a return to all group members. These experiments produce data sets that are rich in dynamics, as subjects respond not only to the parameters of the experiment, but a...

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Theory of Public Goods

The nonrivalrous property holds when use of a unit of the good by one consumer does not preclude or diminish the benefit from another consumer using the same unit of the good. Thus there is jointness in consumption of the good— one unit of the good produced generates multiple units of consumption. Nonrivalrous implies that the opportunity cost of the marginal user is zero. Some classic examples...

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ژورنال

عنوان ژورنال: Games and Economic Behavior

سال: 2009

ISSN: 0899-8256

DOI: 10.1016/j.geb.2008.11.013