Dynamic voluntary provision of public goods

Abstract

The paper considers a dynamic public goods problem in which individuals' contributions are accumulated over time. Analyzing the infinite duration dynamic game with continuous contributions and flow benefits, the paper demonstrates that the free riding problem is aggravated when players' contributions are conditional on the observable collective contributions. Hence, without commitment, an additional incentive to depress contributions arises; a current contributor can free ride on all future contributions as well as on current ones. © 1991.