RATIONAL CONJECTURES EQUILIBRIA IN THE PRIVATE PROVISION OF PUBLIC-GOODS

This article examines the role of information acquisition and the interaction between learning and individual choices in a model of voluntary public good provision. It shows that if agents form conjectural variations via a simple econometric learning process, final equilibira are dependent upon initial conditions. There is a significant set of possible equilibria that arise as limit points of this process and they may be given a simple geometric interpretation.