In class last week, I did an activity with the students that demonstrated free-riding. Students are given a hypothetical dollar and have the option of keeping their dollar or contributing to the Public Account. For each dollar in the Public Account, everyone in the class receives some amount (I use $0.10 in the big class). So, for example, if 100 students contribute to the Public Account, everyone gets $10: anyone who contributed would have $10 but those who kept their dollar would have $11. We do several rounds, with some discussion at various points, and to give students incentive to think about maximizing their 'profit', I give them bonus points equal to some percentage of their total earnings. As expected, some students free-ride; in my class, there were about 75% who contributed to the Public Account in the first round but that quickly dropped to 50% in the second round, about 30% in the third round and about 15% in the fourth round. At that point, we had some discussio...
Observations and ramblings of an economist with a passion for teaching...