Sustaining cooperation in heterogeneous groups

Andrea Robbett

Journal of Economic Behavior & Organization, 2016, vol. 132, issue PA, 121-138

Abstract: The public goods game has been studied extensively in the lab as the quintessential model of a social dilemma. Several mechanisms have been demonstrated to promote group cooperation in linear voluntary contribution experiments – such as communication, costly punishment, and centralized bonuses and fines. However, lab experiments have largely neglected a central obstacle to efficient public good provision: Individuals typically have different, private demands for consumption, hindering the ability of either a central authority or the group members themselves to calculate and enforce the optimal behavior. I adapt the standard public goods game to incorporate heterogeneous incentives and provide an assessment of each mechanism in this richer environment. I find that baseline cooperation is similar to that in the standard linear game. Sanctions are weak and generally ineffective. Communication, however, does promote cooperation, especially when subjects are given the opportunity to reveal their demand or demand is observable. Finally, a centralized fine/bonus scheme is most effective at increasing contributions, but low demanders must pay a fine in equilibrium.

Keywords: Experimental economics; Public good provision; Collective action; Cooperation; Demand revelation (search for similar items in EconPapers)
JEL-codes: C72 C92 H41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268116302037
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:132:y:2016:i:pa:p:121-138

DOI: 10.1016/j.jebo.2016.09.012

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().