Competition for status acquisition in public good games
AbstractThis paper examines the role of status acquisition as a motive for giving in voluntary contri- butions to public goods. In particular, every donor's status is given by the difference between his contribution and that of the other donor. Specifically, I show that contributors give more than in standard models where status is not considered, and their donation is increasing in the value they assign to status. In addition, players'contributions are increasing in the value that their opponents assign to status, reflecting donors' intense competition to gain social status. Furthermore, I consider contributors'equilibrium strategies both in simultaneous and sequen- tial contribution mechanisms. Then, I compare total contributions in both of these mechanisms. I find that the simultaneous contribution order generates higher total contributions than the sequential mechanism only when donors are sufficiently homogeneous in the value they assign to status. Otherwise, the sequential mechanism generates the highest contributions. Updated 6-03-09.
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Bibliographic InfoPaper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-12.
Length: 25 pages
Date of creation: Jul 2008
Date of revision:
Public goods games; Status acquisition; Competition.;
Other versions of this item:
- Félix Muñoz-García, 2011. "Competition for status acquisition in public good games," Oxford Economic Papers, Oxford University Press, vol. 63(3), pages 549-567, July.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-03 (All new papers)
- NEP-EXP-2009-01-03 (Experimental Economics)
- NEP-PBE-2009-01-03 (Public Economics)
- NEP-PUB-2009-01-03 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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