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Real-time monitoring in a public-goods game

Author

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  • He, Simin
  • Zhu, Xun

Abstract

We investigate a novel continuous-time mechanism in a public-goods game. In this game, a clock ensures that the contributions regularly increase within a fixed period for each player. The players can choose when to stop their contributions from increasing while others observe their actions in real time. We demonstrate, theoretically and experimentally, that such a mechanism effectively improves contributions. Three critical factors could cause improvement: announcements, incremental commitments, and the clock. We further decompose these factors and find that while announcements alone are ineffective, introducing incremental commitments and the clock can significantly improve contributions.

Suggested Citation

  • He, Simin & Zhu, Xun, 2023. "Real-time monitoring in a public-goods game," Games and Economic Behavior, Elsevier, vol. 142(C), pages 454-479.
    • Handle: RePEc:eee:gamebe:v:142:y:2023:i:c:p:454-479
    DOI: 10.1016/j.geb.2023.08.017
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    More about this item

    Keywords

    Public goods; Continuous time; Incremental commitments; Announcements;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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