Dynamic public good provision under time preference heterogeneity
Philip Trammell (Global Priorities Institute and Department of Economics, University of Oxford)
GPI Working Paper No. 9-2021
I explore the implications of time preference heterogeneity for the private funding of public goods. The assumption that players use a common discount rate is knife-edge: relaxing it yields substantially different equilibria, for two reasons. First, time preference heterogeneity motivates intertemporal polarization, analogous to the polarization seen in a static public good game. In the simplest settings, more patient players spend nothing early in time and less patient players spending nothing later. Second, and consequently, time preference heterogeneity gives less patient players a “first-mover advantage”. Departures from the common-discounting assumption are economically significant: a patient player’s payoff in equilibrium, relative to that obtained when he is constrained to act according to a higher discount rate, typically grows unboundedly as his share of the initial budget falls to zero. Finally I discuss applications of these results to the debate over legal disbursement minima.
Other working papers
A paradox for tiny probabilities and enormous values – Nick Beckstead (Open Philanthropy Project) and Teruji Thomas (Global Priorities Institute, Oxford University)
We show that every theory of the value of uncertain prospects must have one of three unpalatable properties. Reckless theories recommend risking arbitrarily great gains at arbitrarily long odds for the sake of enormous potential; timid theories recommend passing up arbitrarily great gains to prevent a tiny increase in risk; nontransitive theories deny the principle that, if A is better than B and B is better than C, then A must be better than C.
A non-identity dilemma for person-affecting views – Elliott Thornley (Global Priorities Institute, University of Oxford)
Person-affecting views in population ethics state that (in cases where all else is equal) we’re permitted but not required to create people who would enjoy good lives. In this paper, I present an argument against every possible variety of person- affecting view. The argument takes the form of a dilemma. Narrow person-affecting views must embrace at least one of three implausible verdicts in a case that I call ‘Expanded Non- Identity.’ Wide person-affecting views run into trouble in a case that I call ‘Two-Shot Non-Identity.’ …
Are we living at the hinge of history? – William MacAskill (Global Priorities Institute, Oxford University)
In the final pages of On What Matters, Volume II, Derek Parfit comments: ‘We live during the hinge of history… If we act wisely in the next few centuries, humanity will survive its most dangerous and decisive period… What now matters most is that we avoid ending human history.’ This passage echoes Parfit’s comment, in Reasons and Persons, that ‘the next few centuries will be the most important in human history’. …