An Experimental Examination of the Causes of Aid Failures

Abstract

There is strong experimental evidence that individuals behave in a manner that is inconsistent the Nash equilibrium associated with the provision of a standard public good. In the Nash equilibrium, all individuals will attempt to free ride even though society is collectively better off if all individuals contribute. This current project will examine the effects of costly punishments of the free riders on the voluntary provision of public goods. In addition to the effects of costly punishments, the introduction of differing types will for the potential identification of simple learning and signaling.