Voluntary Provision of a Public Good

Charles A. Holt and Susan K. Laury

Public Goods

Non-computerized experiment

This paper describes a simple public goods game, implemented with playing cards in a classroom setup. Students choose whether to contribute to the provision of a public good in a situation where it is privately optimal not to contribute, but socially optimal to contribute fully. This exercise motivates discussion of altruism, strategies for private fund-raising, and the role of the government in resolving the public goods problem.