CaltechAUTHORS
Published November 2016 | Version Published
Journal Article Open

The Dynamic Free Rider Problem: A Laboratory Study

Creators

  • 1. ROR icon Cornell University
  • 2. ROR icon Bocconi University
  • 3. ROR icon Institute for Economic Research

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.

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.

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Additional details

Identifiers

Eprint ID
72527
Resolver ID
CaltechAUTHORS:20161202-123810870

Related works

Describes
http://resolver.caltech.edu/CaltechAUTHORS:20160301-135235371 (URL)

Funding

NSF
SES-0418150
Alfred P. Sloan Foundation
NSF
SES-0962802
NSF
SES-1426560
Gordon and Betty Moore Foundation
SES-1158
Russell Sage Foundation

Dates

Created
2016-12-02
Created from EPrint's datestamp field
Updated
2021-11-11
Created from EPrint's last_modified field