Free Rider Behavior Of Public Goods Based On Experimental Economics

Public goods free-rider behavior has long been a headache for economists, since its presence leads to failure of market regulation mechanisms, which severely restricts the possibility of market supply of public goods. However, today, with the rapid development of experimental economics and behavioral economics, a growing number of economists and psychologists, which employ the method of psychology, social science to search for the reasons of the existence of free-riding behavior. Experimental studies have found that presume of rational people in the traditional economics has not worked in our human beings life. Many people invest to public goods voluntary, and these subjects participating in the experiment did not take a purely rational people strategy. So the theory of new-classical economics cannot explain the phenomena very well. The old theory has become malfunction.Experimental Economics have been widely used to study the game of public goods. It appears timely, and makes the hypothesis of rational people of the traditional economics more perfect. Although there is full of doubts in the area of Experimental Economics, we cannot deny that the methods of experiments are the realest methods. They are very close to the real thoughts and preference of people. Just like one of the leaders of Experimental Economics-Charles Plott, who said that experiments looks like easier when they compare with the process of nature, however, these results of experiments come from real people, and all of these people obey the real rule and look for maximizing the profit(Charles Plott, 1982). Now, more and more economists employ the experiments to study and justify the theories of the public goods, which include the bargaining model and the problem of bidding. Thus, we can conclude that experimental economics is very useful, it offers a better way for the development of economics. So, at last, we use experiments to study whether the different feedback of information could influence the behavior of subjects.In order to improve the controllability and effectiveness of the experiment, the experimental use of the University of Zurich developed Ztree software system setup and use statistical software of SPSS, Eviews for further analysis and discussion of the experimental study. From the data and analysis of the thesis, we conclude that information feedback form indeed affect the behavior of free-riding.