Efficient public good provision between and within groups

Chowdhury Mohammad Sakib Anwar, Jorge Bruno, Renaud Foucart and Sonali SenGupta

Games and Economic Behavior, 2025, vol. 150, issue C, 183-190

Abstract: We generalize the model of Gallice and Monzón (2019) to incorporate a public goods game with groups, position uncertainty, and observational learning. Contributions are simultaneous within groups, but groups play sequentially based on their observation of an incomplete sample of past contributions. We show that full cooperation between and within groups is possible with self-interested players on a fixed horizon. Position uncertainty implies the existence of an equilibrium where groups of players conditionally cooperate in the hope of influencing further groups. Conditional cooperation implies that each group member is pivotal, so that efficient simultaneous provision within groups is an equilibrium.

Keywords: Public goods; Groups; Position uncertainty; Voluntary contributions (search for similar items in EconPapers)
JEL-codes: C72 D82 H41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:150:y:2025:i:c:p:183-190

DOI: 10.1016/j.geb.2024.12.006

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