Hostname: page-component-7b9c58cd5d-f9bf7 Total loading time: 0 Render date: 2025-03-17T06:21:34.533Z Has data issue: false hasContentIssue false
  • English
  • Français

An Experimental Investigation of Excludable Public Goods

Published online by Cambridge University Press:  14 March 2025

Kurtis J. Swope
Kurtis J. Swope*
Affiliation:
Department of Economics, U.S. Naval Academy, 589 McNair Road Stop 10D, Annapolis, MD 21402, USA
*
email: swope@usna.edu
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper extends the research on incentive compatible institutions for the provision of public goods by imposing a minimum contribution that must be met in order for an individual to enjoy the benefits of the public good. Excluding individuals who do not contribute at least the minimum transforms the linear n-player pure public goods game to an n-player coordination game with multiple, Pareto-ranked Nash equilibria. The experimental results show that exclusion increases contributions to the public good in most cases. However, an increase in contributions may not be sufficient to increase social welfare because there is a welfare cost to excluding individuals when the good is non-rival. Furthermore, exclusion can decrease both contributions and welfare in environments in which individuals fail to coordinate their contributions. The results are sensitive to the minimum contribution requirement and to the relative returns from the public and private alternatives.

Keywords

public goodscoordinationexperiments

JEL classification

H41: Public Goods C90: General D71: Social Choice • Clubs • Committees • Associations
Type
Research Article
Information
Experimental Economics , Volume 5 , Issue 3 , December 2002 , pp. 209 - 222
Copyright
Copyright © 2002 Economic Science Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ameden, H., Gunnthorsdottir, A., Houser, D., and McCabe, K. (2002). “Excluding Free-Riders Improves Reciprocity and Promotes the Private Provision of Public Goods.” University of Arizona. Unpublished manuscript.Google Scholar
Andreoni, J. (1995). “Cooperation in Public-Goods Experiments: Kindness or Confusion?” American Economic Review. 85(4), 891–904.Google Scholar
Croson, R.T.A. (1999). “Theories of Altruism and Reciprocity: Evidence from Linear Public Goods Games.” University of Pennsylvania. Unpublished manuscript.Google Scholar
Gradstein, M. and Nitzen, S. (1990). “Binary Participation and Incremental Provision of Public Goods.” Social Choice and Welfare. 7, 171–192.CrossRefGoogle Scholar
Issac, R. M., Walker, J., and Thomas, S. (1984). “Divergent Evidence on Free Riding: An Experimental Examination of Possible Explanations.” Public Choice. 43(1), 113–149.CrossRefGoogle Scholar
Laury, S. and Holt, C. (forthcoming). “Voluntary Provision of Public Goods: Experimental Results with Interior Nash Equilibria.” In Plott, C. and Smith, V. (eds.), Handbook of Experimental Economic Results. Amsterdam: North Holland Press.Google Scholar
Ledyard, J.O. (1995). “Public Goods: A Survey of Experimental Research.” In Kagel, John A. and Roth, A.E. (eds.), Handbook of Experimental Economics. Princeton, NJ: Princeton University Press, pp. 111–194.CrossRefGoogle Scholar
Orbell, J. and Dawes, R. (1993). “Social Welfare, Cooperators’ Advantage, and the Option of Not Playing the Game.” American Sociological Review. 68(6), 787–791.CrossRefGoogle Scholar
Palfrey, T., and Rosenthal, H. (1984). “Participation and the Provision of Discrete Public Goods: A Strategic Analysis.” Journal of Public Economics. 24, 171–193.CrossRefGoogle Scholar
Palfrey, T., and Prisby, J.E. (1997). “Anomalous Behavior in Public Goods Experiments: How Much and Why?” American Economic Review. 87(5), 829–846.Google Scholar
Samuelson, P. (1954). “The Pure Theory of Public Expenditures.” Review of Economics and Statistics. 36(4), 387–389.CrossRefGoogle Scholar
Van Huyck, J.B., Battalio, C., and Beil, R.O. (1990). “Tacit Coordination Games, Strategic Uncertainty, and Coordination Failure.” American Economic Review. 80(1), 234–248.Google Scholar