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Efficiency in a forced contribution threshold public good game

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  • Edward Cartwright
  • Anna Stepanova

Abstract

We contrast and compare three ways of predicting efficiency in a forced contribution threshold public good game. The three alternatives are based on ordinal potential, quantal response and impulse balance theory. We report an experiment designed to test the respective predictions and find that impulse balance gives the best predictions. A simple expression detailing when enforced contributions result in high or low efficiency is provided.

Suggested Citation

  • Edward Cartwright & Anna Stepanova, 2015. "Efficiency in a forced contribution threshold public good game," Studies in Economics 1506, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:1506
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    Cited by:

    1. Bouma, J.A. & Nguyen, Binh & van der Heijden, Eline & Dijk, J.J., 2018. "Analysing Group Contract Design Using a Lab and a Lab-in-the-Field Threshold Public Good Experiment," Discussion Paper 2018-049, Tilburg University, Center for Economic Research.
    2. P. Battiston & L. Chollete & S. Harrison, 2022. "May The Forcing Be With You: Experimental Evidence on Mandatory Contributions to Public Goods," Economics Department Working Papers 2022-EP01, Department of Economics, Parma University (Italy).
    3. Edward Cartwright & Anna Stepanova & Lian Xue, 2019. "Impulse balance and framing effects in threshold public good games," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(5), pages 903-922, October.
    4. Federica Alberti & Anna Cartwright & Edward Cartwright, 2021. "Predicting Efficiency in Threshold Public Good Games: A Learning Direction Theory Approach," Working Papers in Economics & Finance 2021-01, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
    5. Lorán Chollete & Sharon G. Harrison, 2021. "Unintended Consequences: Ambiguity Neglect and Policy Ineffectiveness," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(2), pages 206-226, April.

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    More about this item

    Keywords

    Public good; threshold; impulse balance theory; quantal response; forced contribution; ordinal potential;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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