PUBLIC GOODS GAMES WITH COSTLY SWITCHING FROM A STATUS QUO

We apply Guney and Richter’s (2016) choice model of costly switching from a status quo to publicgoods games. We find that non-zero contribution into the public good can be optimal under a status quocontribution level. Moreover, intermediate contribution levels are no longer optimal if the switching costdepends only on the status quo contribution level but not on the contribution level the agent switches to.

Anahtar Kelimeler:

Public Goods Game, Contribution, Switching Cost

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