The voluntary provision of a pure public good with diminishing marginal returns

In experiments investigating the voluntary provision of a pure public good, participants consistently allocate resources to this good when the Nash pr ediction is to allocate nothing. This paper explores the robustness of this result when the Nash prediction calls for a division of resources between the private and public goods. We consider how a change in individual resour ce endowments and supplemental earnings information affect allocations to t he public good. Results indicate that, under both the high and low endowmen t conditions, groups continue to allocate more resources than the Nash pred iction. However, providing participants with detailed instructions that des cribe the declining marginal benefit to the public good leads to a signific ant decrease in allocations to the public good.