Social interactions and economic outcomes I
Materials for class on Monday, January 14, 2019
Public goods game results
This game is based on Charles A. Holt and Susan K. Laury “Classroom Games: Voluntary Provision of a Public Good,” Journal of Economic Perspectives 11, nos. 4, Fall (1997): 209–15, doi:10.1257/jep.11.4.209.
Contributions to the public pool decreased fairly rapidly after the first round when you noticed how much free-riding had occurred. Shifting rules later on didn’t do much to change the equilibrium of the game. In both sections, changing the value of a kept red card to $8 in round 5 didn’t really change the average contribution, and changing the value of a kept red card to $10 and a public red card to $2 in round 8 had diverging results. In the 8 AM section, more people contributed to the public pool; in the 9:30 section, more people kept their red cards.
Clearest and muddiest things
Go to this form and answer these three questions:
- What was the muddiest thing from class today? What are you still wondering about?
- What was the clearest thing from class today?
- What was the most exciting thing you learned?
I’ll compile the questions and send out answers after class.