Experiments with public goods: From cooperation to formation

Purpose – The purpose of this chapter is to serve as an introduction and motivation for Volume 13 of Research in Experimental Economics. In many cases, these introductory chapters are prefaces, limited to giving a roadmap of the volume and brief discussions of the chapters and why they were included. However, in some cases a more extensive discussion of the state of the literature and discipline can be useful. We have the same goal for this chapter. Methodology – The methodology is that of a literature review combined with an analysis of the development of issues of endogeneity, self-selection, and formation in laboratory experimental research on public goods, charitable contributions, and nonprofit organizations. Findings – This chapter traces the path of experimental public goods research as viewed through several lenses. There is a correspondence between the period of carefully controlled conditions in laboratory research and the framework of neoclassical economic theory (Lindahl/Samuelson). Indeed this is one of the original purposes of the earliest experiments by economists. However, there has been a distinct shift away from external control towards more endogenous evolution and selection over the past decade. Originality – There have been several surveys of public goods research (many are referenced in this chapter). To our knowledge, this is the first to set out the history of, and the imperatives for, this new direction.