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http://hdl.handle.net/10419/51374
  
Title:Pareto-optimality in linear public goods games PDF Logo
Authors:Hokamp, Sascha
Pickhardt, Michael
Issue Date:2011
Series/Report no.:CAWM discussion paper / Centrum für Angewandte Wirtschaftsforschung Münster 45
Abstract:We derive a generalized method for calculating the total number of Paretooptimal allocations (NOPA) in typical linear public goods games. Among other things, the method allows researchers to develop new experimental designs for testing the relevance of Pareto-optimality in experimental settings, for investigating alternative causes of the decline of voluntary contributions, or for analyzing the contribution behavior of the rich and poor in heterogeneous income settings. Further findings include that the NOPA is related to the marginal per capita return (MPCR) of a contribution to the public good and that the maximum number of free-riders tolerated by the Paretooptimality concept is independent from the group size and income distribution. Finally, we apply our findings to a number of published linear public goods games, suggest an agenda for future research and provide a MATLAB code.
Subjects:linear public goods games
Pareto-optimality
public goods experiments
behavioral economics
free-rider
heterogeneous incomes
heterogeneous MPCRs
JEL:C70
C90
H41
Document Type:Working Paper
Appears in Collections:CAWM Discussion Papers, Universität Münster

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