Cooperation and the common enemy effect
AbstractThis paper presents a game-theoretic rationale for the beneficial effect of a common enemy on cooperation. In a defence game against a common natural threat, the value of the public good of defence is equal to the sum of the playersâ€™ defensive efforts. The game therefore takes the form of a prisonerâ€™s dilemma, leading to free-riding. When the same defence game is played against a common enemy, the value of the public good of defence is equal to the smallest defensive effort. The game now takes the form of a stag hunt, so that a cooperative equilibrium becomes possible. For this reason, an informed and benevolent government may not want to inform the public that it is facing a common natural threat rather than a common enemy. At the same time, the common enemy has an incentive to mimic nature, and perform only random rather than targeted attacks.
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-22 (All new papers)
- NEP-EXP-2012-12-22 (Experimental Economics)
- NEP-GTH-2012-12-22 (Game Theory)
- NEP-HPE-2012-12-22 (History & Philosophy of Economics)
- NEP-MIC-2012-12-22 (Microeconomics)
- NEP-SOC-2012-12-22 (Social Norms & Social Capital)
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