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1、PublicGoods•Publicgoodsaregoodsthateveryone(contributorsandnon-contributorsalike)canenjoy,oncetheyareprovided.Theprovisionofpublicgoodsisbothanimportanttaskandsomethingofamysterytoeconomictheory.Thefielddataclearlyrevealthatpublicgoodsareprovided,butoftengivel
2、ittleinsightintowhethertheyareprovidedinefficientquantities,forexample,andwhatdetermineswhocontributesandwho‘freerides’.1Prisoner’sdilemmaandchickenLedyard(Handbook,’95)suggeststhatpublicgoodsproblemscanusefullybethoughtofasfallingintooneoftwoclasses;prisoners
3、’dilemmas,orgamesofchicken.Prisoners’dilemmaChickenCooperateDefectStraightTurnC1,1-1,2S-1,-11,0D2,-10,0T0,1½½Thatistosay,therearepublicgoodsenvironmentsinwhichcontributingtothepublicgoodisadominatedstrategy,sotheuniqueequilibriumiszerocontribution.Therearealso
4、environmentsinwhichcontributionisnotadominatedstrategy,butneitherisitanequilibriumforeveryonetocontribute.Typicallyintheseenvironmentstherearemultipleequilibria,andoneoftheproblemsfacingpublicgoodsprovisionistheproblemofcoordination.2Lotsofenvironmentsresemble
5、publicgoodsprovision•TheVanHuycketal.minimumgamesweplayedinclassarecloselyrelatedtothese.Eventhoughitisanequilibriumforeveryonetocontribute7tothepublicgood(ofahighminimum),itisn’tastableequilibrium,inthesensethatit’shardtogetto,andeasytogetawayfrom,aswesaw.(Th
6、eyaren’tquitepublicgoodsgames,becauselowproviderscan’tsitbackandenjoyahighlevelofthepublicgood;theypreventitfrombeingprovided…)•Commonpoolresourceproblemsalsofalloutsidethestrictdefinitionofpublicgoodsprovision,buthavealotincommon.•Therearemany“publicgoods–lik
7、e”problems,largeandsmall,notallofwhichareasapparentlyaboutpublicgoodsasare,say,NPRfunddrives.•Forexample,comingtoameetingontime(orcontributingtoajointventurelikeaneditedvolumeontime),evenwhenyouarebusy,providesapublicgood(totheotherparticipantsinthemeeting)ata
8、privatecost(youcouldhavefinishedyourphonecallandcomelate,causinganegativeexternality…)3Freeridingonreplyingtoemail•Barron,Greg,&Yechiam,Eldad(2002).PrivateE-mailrequestsandthediffu