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Explaining Private Provision of Public Goods by Conditional Cooperation - An Evoltuionary Approach -

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  • Maria Vittoria Levati

Abstract

We adopt an evolutionary approach to investigate whether and when conditional cooperation can explain the voluntary contribution phenomenon often observed in public goods experiments and real life. Formally, conditional cooperation is captured by a regret parameter describing how much an individual regrets to contribute less than average. We find that the evolutionary stability of conditional cooperation depends on what is known about the (individual) regret parameters of other group members.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-44.

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Handle: RePEc:esi:discus:2002-44

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Keywords: public goods game; conditional cooperation; evolutionary stability; informational costs;

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Cited by:
  1. Coralio Ballester & Pablo Brañas-Garza & María Paz Espinosa, 2008. "Peer effects in public contributions: theory and experimental evidence," ThE Papers 08/04, Department of Economic Theory and Economic History of the University of Granada..
  2. Alexis Belianin & Marco Novarese, 2005. "Trust, communication and equlibrium behaviour in public goods," Experimental 0506001, EconWPA.

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