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Exploring Group Cooperation in the Provision of Public Goods

23 Pages Posted: 29 Sep 2007 Last revised: 17 Jun 2017

David Zetland

Leiden University - Leiden University College

Date Written: May 25, 2017

Abstract

A novel version of a Voluntary Contribution Mechanism game tests how player cooperation responds to changes in incentives, i.e., payoffs that depend on performance relative to different reference groups. Cooperation is greatest when players are competing against players in other four-person groups, intermediate when competition is diffused, and lowest when players compete in a zero-sum game within their group.

Keywords: Voluntary contribution mechanism, in-group/out-group comparisons, public goods, free-riders

JEL Classification: C9, D7, C72

Suggested Citation

Zetland, David, Exploring Group Cooperation in the Provision of Public Goods (May 25, 2017). Available at SSRN: https://ssrn.com/abstract=1016890 or http://dx.doi.org/10.2139/ssrn.1016890

David Zetland (Contact Author)

Leiden University - Leiden University College ( email )

P.O. Box 13228
Den Haag, 2501EE
Netherlands

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