The Effects of Group Composition and Fractionalization in a Public Goods Game: An Agent-Based Simulation

Pablo Lucas, Sheheryar Banuri and Angela C. M. de Oliveira

No wp-2012-059, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Behavioural economics highlights the role of social preferences in economic decisions. Further, populations are heterogeneous; suggesting that group composition may impact the ability to sustain voluntary public goods contributions. This parallels research in public economics where fractionalization negatively impacts provision. We conduct agent-based simulations of contributions in a public goods game, varying group composition and the weight individuals place on their beliefs versus their underlying social preference type.

Keywords: Group decision making; Public goods; Social choice (search for similar items in EconPapers)
Date: 2012
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