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Investing in institutions for cooperation

Author

Listed:
  • Alexander Smith

    (Worcester Polytechnic Institute (WPI))

  • Xi Wen

    (Worcester Polytechnic Institute (WPI))

Abstract

We examine the effects of endogenizing contribution productivity in a repeated public good game. In our experimental treatment, subjects collectively decide (by voting) how much to invest in augmenting the technology for producing the public good, and subsequently make individual voluntary contributions to provision. In the control, contribution productivity is exogenous. Contributions in the two treatments are similar.

Suggested Citation

  • Alexander Smith & Xi Wen, 2017. "Investing in institutions for cooperation," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 3(1), pages 75-87, July.
    • Handle: RePEc:spr:jesaex:v:3:y:2017:i:1:d:10.1007_s40881-017-0033-2
    DOI: 10.1007/s40881-017-0033-2
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    References listed on IDEAS

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    16. Kingsley, David C. & Brown, Thomas C., 2016. "Endogenous and costly institutional deterrence in a public good experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 62(C), pages 33-41.
    17. Thomas Markussen & Louis Putterman & Jean-Robert Tyran, 2014. "Self-Organization for Collective Action: An Experimental Study of Voting on Sanction Regimes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 301-324.
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    Cited by:

    1. Vangelis Papadimitropoulos, 2018. "Reflections on the Contradictions of the Commons," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(2), pages 317-331, June.
    2. Ngo, Jacqueline & Smith, Alexander, 2020. "A public good game with technological growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 84(C).
    3. Walter D’Lima & Paul Schultz, 2022. "Buy-to-Rent Investors and the Market for Single Family Homes," The Journal of Real Estate Finance and Economics, Springer, vol. 64(1), pages 116-152, January.

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    More about this item

    Keywords

    Public good games; Endogenous institutions; Production technology; Contribution productivity;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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