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Cooperation in local and global groups

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  • Gerlinde Fellner

    ()
    (Department of Economics, Vienna University of Economics & B.A.)

  • Gabriele K. Lünser

    ()
    (University College London, Department of Economics & ELSE)

Abstract

Multiple group memberships are the rule rather than the exception. Locally operating groups frequently offer the advantage of providing social recognition and higher marginal benefits to the individual, whereas globally operating groups may be more beneficial from a social perspective. Within a voluntary contribution environment we experimentally investigate the tension that arises when subjects belong to a smaller local and a larger global group. When the global public good is more efficient individuals first attempt to cooperate in the global public good. However, this tendency quickly unravels and cooperation in the local public good builds up.

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Paper provided by Vienna University of Economics, Department of Economics in its series Department of Economics Working Papers with number wuwp122.

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Date of creation: Jul 2008
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Handle: RePEc:wiw:wiwwuw:wuwp122

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Cited by:
  1. Luca Corazzini & Christopher Cotton & Paola Valbonesi, 2013. "Too many charities? Insight from an experiment with multiple public goods and contribution thresholds," Working Papers 2013-13, University of Miami, Department of Economics.
  2. Beekman, Gonne & Cheung, Stephen L. & Levely, Ian, 2014. "The Effect of Conflict History on Cooperation Within and Between Groups: Evidence from a Laboratory Experiment," IZA Discussion Papers 8287, Institute for the Study of Labor (IZA).
  3. Savikhin, Anya & Sheremeta, Roman, 2012. "Simultaneous Decision-Making in Competitive and Cooperative Environments," MPRA Paper 46809, University Library of Munich, Germany.
  4. Kohei Nitta, 2014. "The Effect of Income Heterogeneity in An Experiment with Global and Local Public Goods," Working Papers 201403, University of Hawaii at Manoa, Department of Economics.
  5. Matthew W. McCarter & Anya C. Samak & Roman M. Sheremeta, 2013. "Divided Loyalties or Conditional Cooperation? An experimental study of contributions to multiple public goods," Working Papers 13-08, Chapman University, Economic Science Institute.

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