Coordination and free-riding problems in the provision of multiple public goods

This study considers the twin problems of free riding and coordination failure, which are prevalent in provision multiple public goods with diminishing marginal returns. Specifically, we consider a game two goods, each has an upper bound effective contribution. Any costly contributions beyond wasted. In this game, payoff-sum maximizing Pareto-optimal outcome requires sum by group members to be equal good, resulting problem regarding who contributes good. We theoretically experimentally examine whether information on values bounds helps overcome these improves efficiency. Theoretical analysis predicts that will improve efficiency because it prompts efficiency-concerned individuals match good equilibrium. The experimental results show countervailing effects providing information; namely, but exacerbates free-riding problem.