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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.|
|Citation:||Battaglini, M, Nunnari, S, Palfrey, TR. (2016). The dynamic free rider problem: A laboratory study. American Economic Journal: Microeconomics, 8 (4), 268 - 308. doi:10.1257/mic.20150126|
|Pages:||268 - 308|
|Type of Material:||Journal Article|
|Journal/Proceeding Title:||American Economic Journal: Microeconomics|
|Version:||Final published version. Article is made available in OAR by the publisher's permission or policy.|
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