Group Formation and Heterogeneity in Collective Action Games
AbstractWe present a simple model of voluntary groups in a collective action problem where individuals differ in their willingness to cooperate. The heterogeneity of individuals' preferences generally yields multiple equilibrium groups with different levels of cooperation. Voluntary participation in a binding contract to cooperate does not necessarily lead to the full cooperation. Applications to voluntary provision of public goods and cartel formation in oligopolistic markets are discussed.
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Bibliographic InfoPaper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2005-07.
Length: 26 p.
Date of creation: Oct 2005
Date of revision:
group formation; collective action; heterogeneous preferences; voluntary participation;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
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- Taiji Furusawa & Hideo Konishi, 2008.
"Contributing or Free-Riding? Voluntary Participation in a Public Good Economy,"
Boston College Working Papers in Economics
681, Boston College Department of Economics, revised 04 Aug 2010.
- Konishi, Hideo & Furusawa, Taiji, 2011. "Contributing or free-riding? Voluntary participation in a public good economy," Theoretical Economics, Econometric Society, vol. 6(2), May.
- Taiji Furusawa & Hideo Konishi, 2010. "Contributing or Free-Riding? Voluntary Participation in a Public Good Economy," Global COE Hi-Stat Discussion Paper Series gd09-128, Institute of Economic Research, Hitotsubashi University.
- FURUSAWA Taiji & KONISHI Hideo, 2011. "Contributing or Free-Riding? Voluntary Participation in a Public Good Economy," Discussion papers 11028, Research Institute of Economy, Trade and Industry (RIETI).
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