Power Asymmetry in Repeated Play of Provision and Appropriation Games

Abstract. This paper studies the effect of power asymmetry on resolution of social dilemmas in repeated play of linear public good games. The experiment uses a 2X2 design that crosses power symmetry or asymmetry in games with positive (provision) or negative (appropriation) externalities. Our data suggest that power asymmetry has a detrimental effect on voluntary allocations to a public good, with the effect being more pronounced in the asymmetric-power appropriation game. Allocations to a public good increase with “social” income, which is inconsistent with allocations by different individuals being strategic substitutes. With power asymmetry, second movers earn more than first movers in the appropriation game but not in the provision game