October 4, 2010

A Note on the Design of Experiments Involving Public Goods

by Philip E. Graves

- Concern about potential free riding in the provision of public goods has a long history. More recently, experimental economists have turned their attention to the conditions under which free riding would be expected to occur. A model of free riding is provided here which demonstrates that existing experimental approaches fail to explore a potentially important real-world dimension of free riding. In a cash-in-advance economy, free riding becomes a two-stage problem, while existing experiments only address the second stage.

Graves, P.E. (2010). "A Note on the Design of Experiments Involving Public Goods." CESifo Working Paper No. 3187, Sept 2010.