Inequality Aversion and Asymmetric Cooperation in N-Player Public Good Games

24 Pages Posted: 20 Dec 2017

Date Written: December 16, 2017

Abstract

Conditional cooperation is an important factor in voluntary cooperation. Fehr and Schmidt (1999) show that in public good games conditional cooperation among rational players is feasible if cooperators are sufficiently inequality averse and if there are not too many free riders. The derived equilibria are characterized by cooperators who all choose the same above minimum contribution level (symmetric cooperation). We generalize this result by showing, first, that there exist equilibria in which cooperators choose different above minimum contribution levels and, second, that there exist equilibria with three or more different contribution levels. We refer to these as equilibria with "asymmetric cooperation" in contrast to the symmetric equilibria in which all cooperators choose the same contribution level.

Keywords: Microeconomics, Behavioral Economics, Social Preferences, Inequality Aversion, Public Goods, Asymmetric Cooperation

JEL Classification: D03, D63, D64, H41

Suggested Citation

Hariskos, Wasilios and Königstein, Manfred, Inequality Aversion and Asymmetric Cooperation in N-Player Public Good Games (December 16, 2017). Available at SSRN: https://ssrn.com/abstract=3089183 or http://dx.doi.org/10.2139/ssrn.3089183

Wasilios Hariskos (Contact Author)

University of Erfurt ( email )

Staatswissenschaftliche Fakultät
Nordhaeuser Str. 63
Erfurt, DE Thuringia 99089
Germany
00493617374582 (Phone)

HOME PAGE: http://https://www.uni-erfurt.de/angewandte-mikrooekonomie/team/dr-wasilios-hariskos/

Manfred Königstein

University of Erfurt ( email )

Internationales Buro
Nordhaeuser Str. 63
D - 99089 Erfurt
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
21
Abstract Views
250
PlumX Metrics