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Are there any questions before we begin with the paid session?
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We will now begin with the first of 10 paid matches of the experiment. Please pull out your dividers for the paid session of the experiment. If there are any problems or questions from this point on
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Abstract We report the results of an experiment that investigates free riding in the accumulation of durable public goods. We consider economies with reversibility, where contributions can be positive or negative; and economies with irreversibility, where contributions are nonnegative. Aggregate outcomes support the qualitative predictions of the Markov Perfect Equilibria (MPE) characterized in Battaglini, Nunnari, and Palfrey (2014): steady state levels of public good are lower with reversibility than irreversibility; accumulation is inefficiently slow; and the public good is under-provided in both regimes. On the other hand, public good levels are higher than MPE, and some evidence of history dependence is detected. (JEL C91, H41 )
American Economic Journal: Microeconomics – American Economic Association
Published: Nov 1, 2016
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