Efficient Public Good Provision Between and Within Groups

Fuente: arXiv
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Main Authors: Anwar, Chowdhury Mohammad Sakib, Bruno, Jorge, Foucart, Renaud, SenGupta, Sonali
Format: Preprint
Published: 2023
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author Anwar, Chowdhury Mohammad Sakib
Bruno, Jorge
Foucart, Renaud
SenGupta, Sonali
author_facet Anwar, Chowdhury Mohammad Sakib
Bruno, Jorge
Foucart, Renaud
SenGupta, Sonali
contents We generalize the model of Gallice and Monzon (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.
format Preprint
id arxiv_https___arxiv_org_abs_2303_10514
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Efficient Public Good Provision Between and Within Groups
Anwar, Chowdhury Mohammad Sakib
Bruno, Jorge
Foucart, Renaud
SenGupta, Sonali
Theoretical Economics
We generalize the model of Gallice and Monzon (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.
title Efficient Public Good Provision Between and Within Groups
topic Theoretical Economics
url https://arxiv.org/abs/2303.10514