A simple in-class experiment on the efficient production of the pure public good touching the median voter theorem

RAGUSEO, Domenico, Martin KLUS and Jiří ŠPALEK. A simple in-class experiment on the efficient production of the pure public good touching the median voter theorem. Acta universitatis agriculturae et silviculturae Mendelianae Brunensis. Brno: Mendelova univerzita v Brně, 2012, vol. 60, No 4, p. 319-326. ISSN 1211-8516.

Basic information

• Original name: A simple in-class experiment on the efficient production of the pure public good touching the median voter theorem
• Name in Czech: Jednoduchý výukový experiment zkoumající efektivní produkci čistého veřejného statku s aspektem chování voliče mediána
• Authors: RAGUSEO, Domenico (380 Italy, belonging to the institution), Martin KLUS (703 Slovakia) and Jiří ŠPALEK (203 Czech Republic, guarantor, belonging to the institution).
• Edition: Acta universitatis agriculturae et silviculturae Mendelianae Brunensis, Brno, Mendelova univerzita v Brně, 2012, 1211-8516.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50200 5.2 Economics and Business
• Country of publisher: Czech Republic
• Confidentiality degree: is not subject to a state or trade secret
• RIV identification code: RIV/00216224:14560/12:00060650
• Organization unit: Faculty of Economics and Administration
• Keywords (in Czech): Efektivnost; Experiment; Černý pasažér; Volič medián; Veřejná volba; Veřejný statek
• Keywords in English: Efficiency; Experiment; Free rider; Game; Median voter; Public choice; Public good
• Tags: International impact, Reviewed

Abstract

The paper show possibilities of introducing modern methods into public economy and finance teaching. We present in-class experiment which illustrates one of typical model from political economy - the median voter theorem. Students are endowed with cards that represent their preferences on different levels of the public good production. They compare benefit they can get from different levels of public good (these levels represent three candidates) and then they vote for the most preferred level. This process continues for several rounds, with a new election taking place with a different sample of students. The in-class experiment demonstrates that the simplicity of the median voter theorem, when there are more than two candidates, provides only an imprecise prediction of the collective choice. The methodology of the experiment is enriched by the statistical analysis of experimental results from experiment cartied out by the authors in Czech Republic and Slovakia.

Abstract (in Czech)

Článek ukazuje možnosti a limity využití metody ekonomckého experimentu ve výuce. Na příklad modelu vztahu voliče mediána a efektivní prodekce veřejného statku ukazuje způsob, jakým mohou studenti složitější ekonomické vztahy pochopit díky vlastní zkušenosti v rámci experimentu. Výsledky se opírají o experimenty provedené s českými a slovenskými studenty.