IDEAS home Printed from https://ideas.repec.org/a/eee/chsofr/v130y2020ics0960077919303649.html
   My bibliography  Save this article

Will you cooperate in case the payoff can be guaranteed?

Author

Listed:
  • Zhang, Xiaoyang
  • Chen, Tong
  • Chen, Qiao
  • Li, Xueya

Abstract

To reduce the risk of cooperators being hitchhiked so as to promote cooperation, this paper proposes a kind of insurance-like incentive mechanism, which integrates the advantages of reward and insurance. This paper uses an agent-based model to simulate the feasibility of the insurance-like incentive. The changes in the fraction of cooperators and net profit influenced by different extra-charges and incentive rates are analyzed. And evolutionary results show that with the introduction of such an insurance-like incentive mechanism, cooperators ultimately dominate the situation, and the value of the net profit of organizer becomes higher than without this mechanism. The lower the extra-charge, or the higher the incentive rate, the easier the cooperation will be. Moreover, the proper match between extra-charge and incentive rate can help organizers achieve the optimal effect of encouraging collective donation. Through this mechanism, the incentive costs can be saved noticeably, and there are no second-order exploiters. The risk of cooperators of being exploited can be reduced by paying the extra-charges. And cooperators may continue to increase their contributions even if there are no defectors in the system.

Suggested Citation

  • Zhang, Xiaoyang & Chen, Tong & Chen, Qiao & Li, Xueya, 2020. "Will you cooperate in case the payoff can be guaranteed?," Chaos, Solitons & Fractals, Elsevier, vol. 130(C).
  • Handle: RePEc:eee:chsofr:v:130:y:2020:i:c:s0960077919303649
    DOI: 10.1016/j.chaos.2019.109423
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960077919303649
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.chaos.2019.109423?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guth, Werner & Levati, M. Vittoria & Sutter, Matthias & van der Heijden, Eline, 2007. "Leading by example with and without exclusion power in voluntary contribution experiments," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 1023-1042, June.
    2. Xuelong Li & Marko Jusup & Zhen Wang & Huijia Li & Lei Shi & Boris Podobnik & H. Eugene Stanley & Shlomo Havlin & Stefano Boccaletti, 2018. "Punishment diminishes the benefits of network reciprocity in social dilemma experiments," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 115(1), pages 30-35, January.
    3. Greiner, Ben & Vittoria Levati, M., 2005. "Indirect reciprocity in cyclical networks: An experimental study," Journal of Economic Psychology, Elsevier, vol. 26(5), pages 711-731, October.
    4. Hiroki Ozono & Nobuhito Jin & Motoki Watabe & Kazumi Shimizu, 2016. "Solving the second-order free rider problem in a public goods game: An experiment using a leader support system," Working Papers 1604, Waseda University, Faculty of Political Science and Economics.
    5. Martin Sefton & Robert Shupp & James M. Walker, 2007. "The Effect Of Rewards And Sanctions In Provision Of Public Goods," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 671-690, October.
    6. Ernst Fehr & Simon Gächter, 2002. "Altruistic punishment in humans," Nature, Nature, vol. 415(6868), pages 137-140, January.
    7. Wang, Chengjiang & Wang, Li & Wang, Juan & Sun, Shiwen & Xia, Chengyi, 2017. "Inferring the reputation enhances the cooperation in the public goods game on interdependent lattices," Applied Mathematics and Computation, Elsevier, vol. 293(C), pages 18-29.
    8. Yannis M. Ioannides & Giorgio Topa, 2010. "Neighborhood Effects: Accomplishments And Looking Beyond Them," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 343-362, February.
    9. Liu, Penghui & Liu, Jing, 2017. "Contribution diversity and incremental learning promote cooperation in public goods games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 486(C), pages 827-838.
    10. Jinming Du, 2018. "Insurance optimizes complex interactive and cooperative behaviors in public goods games," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-9, May.
    11. Du, Wen-Bo & Cao, Xian-Bin & Zhao, Lin & Hu, Mao-Bin, 2009. "Evolutionary games on scale-free networks with a preferential selection mechanism," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(20), pages 4509-4514.
    12. McCarter, Matthew W. & Rockmann, Kevin W. & Northcraft, Gregory B., 2010. "Is it even worth it? The effect of loss prospects in the outcome distribution of a public goods dilemma," Organizational Behavior and Human Decision Processes, Elsevier, vol. 111(1), pages 1-12, January.
    13. Chen, Qiao & Chen, Tong & Yang, Ran, 2019. "Using rewards reasonably: The effects of stratified-rewards in public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 120(C), pages 67-74.
    14. Ma, Yongjuan & Chu, Chen & Chen, Fei & Shen, Chen & Geng, Yini & Shi, Lei, 2018. "Evolutionary dynamics of social dilemmas with asymmetry," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 496(C), pages 156-161.
    15. Babak Fotouhi & Naghmeh Momeni & Benjamin Allen & Martin A. Nowak, 2018. "Conjoining uncooperative societies facilitates evolution of cooperation," Nature Human Behaviour, Nature, vol. 2(7), pages 492-499, July.
    16. Francisco C. Santos & Marta D. Santos & Jorge M. Pacheco, 2008. "Social diversity promotes the emergence of cooperation in public goods games," Nature, Nature, vol. 454(7201), pages 213-216, July.
    17. Kenju Kamei & Louis Putterman & Jean-Robert Tyran, 2015. "State or nature? Endogenous formal versus informal sanctions in the voluntary provision of public goods," Experimental Economics, Springer;Economic Science Association, vol. 18(1), pages 38-65, March.
    18. Kurokawa, Shun, 2019. "How memory cost, switching cost, and payoff non-linearity affect the evolution of persistence," Applied Mathematics and Computation, Elsevier, vol. 341(C), pages 174-192.
    19. Yen-Sheng Chiang & Yung-Fong Hsu, 2017. "Direct Election of Group Decision-Makers Can Facilitate Cooperation in the Public Goods Game," Group Decision and Negotiation, Springer, vol. 26(1), pages 197-213, January.
    20. Liu, Jinzhuo & Meng, Haoran & Wang, Wei & Li, Tong & Yu, Yong, 2018. "Synergy punishment promotes cooperation in spatial public good game," Chaos, Solitons & Fractals, Elsevier, vol. 109(C), pages 214-218.
    21. Yang, Ran & Chen, Tong & Chen, Qiao, 2018. "The impact of lotteries on cooperation in the public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 512(C), pages 925-934.
    22. Li, Yumeng & Zhang, Jun & Perc, Matjaž, 2018. "Effects of compassion on the evolution of cooperation in spatial social dilemmas," Applied Mathematics and Computation, Elsevier, vol. 320(C), pages 437-443.
    23. Yang, Han-Xin & Chen, Xiaojie, 2018. "Promoting cooperation by punishing minority," Applied Mathematics and Computation, Elsevier, vol. 316(C), pages 460-466.
    24. Chen, Qiao & Chen, Tong & Wang, Yongjie, 2017. "Publishing the donation list incompletely promotes the emergence of cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 310(C), pages 48-56.
    25. Deng, Zheng-Hong & Huang, Yi-Jie & Gu, Zhi-Yang & Liu, Dan & Gao, Li, 2018. "Multigames with voluntary participation on interdependent networks and the evolution of cooperation," Chaos, Solitons & Fractals, Elsevier, vol. 114(C), pages 151-157.
    26. Zhang, Shuhua & Zhang, Zhipeng & Wu, Yu’e & Yan, Ming & Xie, Yunya, 2018. "Tolerance-based punishment and cooperation in spatial public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 110(C), pages 267-272.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Xiaoyang & Chen, Tong & Chen, Qiao & Li, Xueya, 2020. "Increasing pool funds in public goods: The effects of deposit-based delayed rewards," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Qiao & Chen, Tong & Wang, Yongjie, 2019. "Cleverly handling the donation information can promote cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 346(C), pages 363-373.
    2. Zhang, Xiaoyang & Chen, Tong & Chen, Qiao & Li, Xueya, 2020. "Increasing pool funds in public goods: The effects of deposit-based delayed rewards," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    3. Li, Cong & Xu, Hedong & Fan, Suohai, 2020. "Synergistic effects of self-optimization and imitation rules on the evolution of cooperation in the investor sharing game," Applied Mathematics and Computation, Elsevier, vol. 370(C).
    4. Zhenghong Wu & Huan Huang & Qinghu Liao, 2021. "The study on the role of dedicators on promoting cooperation in public goods game," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-17, September.
    5. Chen, Qiao & Chen, Tong & Wang, Yongjie, 2017. "Publishing the donation list incompletely promotes the emergence of cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 310(C), pages 48-56.
    6. Su, Lichen & Yang, Zhengzhi & Zhou, Bowen & Zhang, Naitian & Li, Yumeng, 2023. "Effects of interdependent network reciprocity on the evolution of public cooperation," Applied Mathematics and Computation, Elsevier, vol. 454(C).
    7. Haodong Niu & Keyu Li & Juan Wang, 2023. "Paid Access to Information Promotes the Emergence of Cooperation in the Spatial Prisoner’s Dilemma," Mathematics, MDPI, vol. 11(4), pages 1-15, February.
    8. Liu, Chengwei & Wang, Juan & Li, Xiaopeng & Xia, Chengyi, 2020. "The link weight adjustment considering historical strategy promotes the cooperation in the spatial prisoner’s dilemma game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 554(C).
    9. Zhang, Shuhua & Zhang, Zhipeng & Wu, Yu’e & Yan, Ming & Li, Yu, 2019. "Strategy preference promotes cooperation in spatial evolutionary games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 514(C), pages 181-188.
    10. Quan, Ji & Yu, Junyu & Li, Xia & Wang, Xianjia, 2023. "Conditional switching between social excluders and loners promotes cooperation in spatial public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 169(C).
    11. Shang, Lihui & Sun, Sihao & Ai, Jun & Su, Zhan, 2022. "Cooperation enhanced by the interaction diversity for the spatial public goods game on regular lattices," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 593(C).
    12. Quan, Ji & Yang, Wenjun & Li, Xia & Wang, Xianjia & Yang, Jian-Bo, 2020. "Social exclusion with dynamic cost on the evolution of cooperation in spatial public goods games," Applied Mathematics and Computation, Elsevier, vol. 372(C).
    13. Zhang, Lan & Xie, Yuan & Huang, Changwei & Li, Haihong & Dai, Qionglin, 2020. "Heterogeneous investments induced by historical payoffs promote cooperation in spatial public goods games," Chaos, Solitons & Fractals, Elsevier, vol. 133(C).
    14. Xu, Xue, 2018. "Experiments on cooperation, institutions, and social preferences," Other publications TiSEM d3cf4dba-b0f3-4643-a267-7, Tilburg University, School of Economics and Management.
    15. Cheng, Fei & Chen, Tong & Chen, Qiao, 2020. "Rewards based on public loyalty program promote cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 378(C).
    16. Isamu Okada, 2020. "A Review of Theoretical Studies on Indirect Reciprocity," Games, MDPI, vol. 11(3), pages 1-17, July.
    17. Wang, Hanchen & Sun, Yichun & Zheng, Lei & Du, Wenbo & Li, Yumeng, 2018. "The public goods game on scale-free networks with heterogeneous investment," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 509(C), pages 396-404.
    18. Li, Yumeng & Wang, Hanchen & Du, Wenbo & Perc, Matjaž & Cao, Xianbin & Zhang, Jun, 2019. "Resonance-like cooperation due to transaction costs in the prisoner’s dilemma game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 521(C), pages 248-257.
    19. Song, Fanpeng & Wu, Jianliang & Fan, Suohai & Jing, Fei, 2020. "Transcendental behavior and disturbance behavior favor human development," Applied Mathematics and Computation, Elsevier, vol. 378(C).
    20. Tu, Jing, 2018. "Contribution inequality in the spatial public goods game: Should the rich contribute more?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 496(C), pages 9-14.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chsofr:v:130:y:2020:i:c:s0960077919303649. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thayer, Thomas R. (email available below). General contact details of provider: https://www.journals.elsevier.com/chaos-solitons-and-fractals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.