Reciprocity Networks and the Participation Problem

Martin Dufwenberg and Amrish Patel

No 603, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: Reciprocity can be a powerful motivation for human behaviour. Scholars argue that it is relevant in the context of private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The interaction of reciprocity with cost-sharing is critical. Neither cost-sharing nor reciprocity in isolation can solve the problem, but together they have that potential. We introduce new network notions of reciprocity relations to better understand this. Our analysis uncovers an intricate web of nuances that demonstrate the attainable yet elusive nature of a unique outcome.

Keywords: discrete public good; participation; reciprocity networks; coordination; cost-sharing (search for similar items in EconPapers)
JEL-codes: C72 D03 H41 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2014-08-13
New Economics Papers: this item is included in nep-gth, nep-mic, nep-net, nep-ore and nep-soc
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Reciprocity networks and the participation problem (2017)
Working Paper: Reciprocity Networks and the Participation Problem (2014)
Working Paper: Reciprocity Networks and the Participation Problem (2014)
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