A public good game with technological growth

•With endogenous growth of the production technology, contributions rise over time.•Contribution patterns are similar with exogenous growth.•These contribution patterns are a strong contrast to when there is no growth. We conduct a public good game with technological growth. In our endogenous growth...

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Published inJournal of behavioral and experimental economics Vol. 84; p. 101487
Main Authors Ngo, Jacqueline, Smith, Alexander
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier Inc 01.02.2020
Elsevier Science Ltd
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Online AccessGet full text
ISSN2214-8043
2214-8051
DOI10.1016/j.socec.2019.101487

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Abstract •With endogenous growth of the production technology, contributions rise over time.•Contribution patterns are similar with exogenous growth.•These contribution patterns are a strong contrast to when there is no growth. We conduct a public good game with technological growth. In our endogenous growth treatment, subjects invest in the public good production technology (“contribution productivity”) and make contributions to provision. In the exogenous growth treatment, we increase contribution productivity at a rate that matches the growth in the endogenous growth treatment. We also have a control treatment in which there is no growth. With endogenous growth, subjects initially invest high and contribute low amounts, and shift their expenditure from investment to contributions as the rounds proceed. In a second sequence of rounds, average earnings are higher than in the first sequence. While the patterns of contributions are generally similar in the exogenous growth treatment, it is only with endogenous growth that average earnings are higher in the second sequence than in the first.
AbstractList •With endogenous growth of the production technology, contributions rise over time.•Contribution patterns are similar with exogenous growth.•These contribution patterns are a strong contrast to when there is no growth. We conduct a public good game with technological growth. In our endogenous growth treatment, subjects invest in the public good production technology (“contribution productivity”) and make contributions to provision. In the exogenous growth treatment, we increase contribution productivity at a rate that matches the growth in the endogenous growth treatment. We also have a control treatment in which there is no growth. With endogenous growth, subjects initially invest high and contribute low amounts, and shift their expenditure from investment to contributions as the rounds proceed. In a second sequence of rounds, average earnings are higher than in the first sequence. While the patterns of contributions are generally similar in the exogenous growth treatment, it is only with endogenous growth that average earnings are higher in the second sequence than in the first.
We conduct a public good game with technological growth. In our endogenous growth treatment, subjects invest in the public good production technology ("contribution productivity") and make contributions to provision. In the exogenous growth treatment, we increase contribution productivity at a rate that matches the growth in the endogenous growth treatment. We also have a control treatment in which there is no growth. With endogenous growth, subjects initially invest high and contribute low amounts, and shift their expenditure from investment to contributions as the rounds proceed. In a second sequence of rounds, average earnings are higher than in the first sequence. While the patterns of contributions are generally similar in the exogenous growth treatment, it is only with endogenous growth that average earnings are higher in the second sequence than in the first.
ArticleNumber 101487
Author Ngo, Jacqueline
Smith, Alexander
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crossref_primary_10_12677_AP_2023_136307
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Voluntary contribution mechanism
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Snippet •With endogenous growth of the production technology, contributions rise over time.•Contribution patterns are similar with exogenous growth.•These contribution...
We conduct a public good game with technological growth. In our endogenous growth treatment, subjects invest in the public good production technology...
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StartPage 101487
SubjectTerms Dynamics
Earnings
Growth
Productivity
Public good
Public good game
Technology
Technology adoption
Voluntary contribution mechanism
Title A public good game with technological growth
URI https://dx.doi.org/10.1016/j.socec.2019.101487
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