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What are the equilibria in public-good experiments?

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  • Wolff, Irenaeus

Abstract

Most social-preference models have been tailored to yield only a full-defection equilibrium in one-shot linear public-good situations. This paper determines the Nash-equilibrium sets that result from experiment participants’ elicited preferences. The data show that multiple equilibria are relatively frequent even in a standard three-player setting. In this perspective, the common finding of close-to-omnilateral defection at the end of repeated public-good games is surprising and raises the question of why the dynamics of play seem to select this equilibrium out of the existing equilibria.

Suggested Citation

  • Wolff, Irenaeus, 2017. "What are the equilibria in public-good experiments?," Economics Letters, Elsevier, vol. 150(C), pages 83-85.
    • Handle: RePEc:eee:ecolet:v:150:y:2017:i:c:p:83-85
    DOI: 10.1016/j.econlet.2016.11.015
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    References listed on IDEAS

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    Cited by:

    1. Wolff, Irenaeus, 2022. "Predicting Voluntary Contributions by `Revealed-Preference Nash-Equilibrium'," VfS Annual Conference 2022 (Basel): Big Data in Economics 264072, Verein für Socialpolitik / German Economic Association.
    2. Aurélie Dariel, 2018. "Conditional Cooperation and Framing Effects," Games, MDPI, vol. 9(2), pages 1-12, June.
    3. Eugen Dimant & Michele Gelfand & Anna Hochleitner & Silvia Sonderegger, 2022. "Strategic Behavior with Tight, Loose and Polarized Norms," ECONtribute Discussion Papers Series 198, University of Bonn and University of Cologne, Germany.
    4. Wolff, Irenaeus, 2017. "(Un-)Stable Preferences, Beliefs, and the Predictability of Behaviour," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168231, Verein für Socialpolitik / German Economic Association.
    5. Eugen Dimant & Michele Gelfand & Anna Hochleitner & Silvia Sonderegger, 2023. "Strategic Behavior with Tight, Loose and Polarized Norms," CESifo Working Paper Series 10233, CESifo.
    6. Edward Cartwright, 2019. "Guilt Aversion and Reciprocity in the Performance-Enhancing Drug Game," Journal of Sports Economics, , vol. 20(4), pages 535-555, May.

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    More about this item

    Keywords

    Public good; Social dilemma; Nash-equilibrium; Conditional cooperation; Social preferences;
    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
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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