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Revisiting the volunteer's dilemma: group size and public good provision in the presence of some ambiguity aversion

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  • Brishti Guha

    (Jawaharlal Nehru University)

Abstract

Conventional game theory dictates that in a volunteer's dilemma, the probability of public good provision decrease in group size. However, experimental evidence does not support this: the probability of public good provision approaches one in large groups. I build a theoretical model addressing this puzzle, where a fraction of the group has maximin preferences, while the rest are expected utility maximizers. In small groups, the probability of public good provision may decrease with group size, but it reaches one in larger groups. While randomization is common in small groups, larger groups have some individuals who always volunteer, and others who never volunteer (another experimentally observed phenomenon).

Suggested Citation

  • Brishti Guha, 2020. "Revisiting the volunteer's dilemma: group size and public good provision in the presence of some ambiguity aversion," Economics Bulletin, AccessEcon, vol. 40(2), pages 1308-1318.
  • Handle: RePEc:ebl:ecbull:eb-20-00206
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    References listed on IDEAS

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    Cited by:

    1. Campos-Mercade, Pol, 2021. "The volunteer’s dilemma explains the bystander effect," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 646-661.
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    3. Guha, Brishti, 2022. "Ambiguity aversion, group size, and deliberation: Costly information and decision accuracy," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 115-133.

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    More about this item

    Keywords

    Volunteer's dilemma; group size; public goods; maximin; ambiguity.;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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