23 Pages Posted: 29 Sep 2007 Last revised: 17 Jun 2017
Date Written: May 25, 2017
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: Suggested Citation