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Voluntary Contributions by Consent or Dissent

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  • Tan, Jonathan H.W.
  • Breitmoser, Yves
  • Bolle, Friedel

Abstract

We study games where voluntary contributions can be adjusted until a steady state is found. In consent games contributions start at zero and can be increased by consent, and in dissent games contributions start high and can be decreased by dissent. Equilibrium analysis predicts free riding in consent games but, in contrast, as much as socially efficient outcomes in dissent games. In our experiment, inexperienced subjects contribute high in consent games and low in dissent games, but behavior converges toward equilibrium predictions over time and eventually experienced subjects contribute as predicted: low in consent games and high in dissent games. Observed deviations from equilibrium in consent games are best explained by level-k reasoning, and those in dissent games are best explained by hierarchical reasoning formalized as nested logit equilibrium.

Suggested Citation

  • Tan, Jonathan H.W. & Breitmoser, Yves & Bolle, Friedel, 2010. "Voluntary Contributions by Consent or Dissent," MPRA Paper 22001, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:22001
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    Cited by:

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    2. Bolle, Friedel & Spiller, Jörg, 2016. "Not efficient but payoff dominant: Experimental investigations of equilibrium play in binary threshold public good games," Discussion Papers 379, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    3. Haruvy, Ernan & Li, Sherry Xin & McCabe, Kevin & Twieg, Peter, 2017. "Communication and visibility in public goods provision," Games and Economic Behavior, Elsevier, vol. 105(C), pages 276-296.
    4. Adrian Hillenbrand, 2018. "Cooperation with lists," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2018_01, Max Planck Institute for Research on Collective Goods.
    5. Renaud Foucart & Jonathan H. W. Tan, 2024. "A test of loyalty," Theory and Decision, Springer, vol. 97(1), pages 109-137, August.
    6. He, Simin & Zhu, Xun, 2023. "Real-time monitoring in a public-goods game," Games and Economic Behavior, Elsevier, vol. 142(C), pages 454-479.

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    More about this item

    Keywords

    public good; contribution game; bounded rationality; mechanism;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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