IDEAS home Printed from https://ideas.repec.org/a/spr/joecth/v75y2023i1d10.1007_s00199-021-01394-1.html
   My bibliography  Save this article

Complementarity and information in collective action

Author

Listed:
  • Stefano Barbieri

    (Tulane University)

Abstract

We study how accuracy and commonality of information affect the incentives of agents who voluntarily participate in collective action. Our focus is on the interaction of information and individual efforts’ complementarity. We use a private provision of a public good model that captures high complementarity through the weakest-link technology and low complementarity through the best-shot technology. Increases in the accuracy of information lead to more dispersion of individual contributions and increases (decreases) in expected provision if complementarity is low (high). Increases in commonality raise (lower) all contributions if complementarity is high (low). We interpret our results in light of recent developments for information diffusion: if one takes the view that like-minded agents are now receiving information that is less accurate and more likely to be the same than in the past, then our model predicts increased success for activities with high complementarity such as protests, and a negative effect on the development of new ideas, such as slogans or “memes,” activities that by and large depend on the best individual effort and so display low complementarity.

Suggested Citation

  • Stefano Barbieri, 2023. "Complementarity and information in collective action," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(1), pages 167-206, January.
  • Handle: RePEc:spr:joecth:v:75:y:2023:i:1:d:10.1007_s00199-021-01394-1
    DOI: 10.1007/s00199-021-01394-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00199-021-01394-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s00199-021-01394-1?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. Jay Pil Choi & Subhasish M. Chowdhury & Jaesoo Kim, 2016. "Group Contests with Internal Conflict and Power Asymmetry," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 816-840, October.
    2. Krasteva, Silvana & Yildirim, Huseyin, 2013. "(Un)Informed charitable giving," Journal of Public Economics, Elsevier, vol. 106(C), pages 14-26.
    3. Richard Cornes, 1993. "Dyke Maintenance and Other Stories: Some Neglected Types of Public Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 259-271.
    4. Cornes, Richard & Hartley, Roger, 2007. "Weak links, good shots and other public good games: Building on BBV," Journal of Public Economics, Elsevier, vol. 91(9), pages 1684-1707, September.
    5. Hunt Allcott & Matthew Gentzkow, 2017. "Social Media and Fake News in the 2016 Election," NBER Working Papers 23089, National Bureau of Economic Research, Inc.
    6. Stefano Barbieri & David Malueg, 2014. "Group efforts when performance is determined by the “best shot”," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 333-373, June.
    7. , & ,, 2010. "Common agency and public good provision under asymmetric information," Theoretical Economics, Econometric Society, vol. 5(2), May.
    8. Kolmar, Martin & Rommeswinkel, Hendrik, 2013. "Contests with group-specific public goods and complementarities in efforts," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 9-22.
    9. Parimal Bag & Santanu Roy, 2011. "On sequential and simultaneous contributions under incomplete information," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(1), pages 119-145, February.
    10. George-Marios Angeletos & Alessandro Pavan, 2007. "Efficient Use of Information and Social Value of Information," Econometrica, Econometric Society, vol. 75(4), pages 1103-1142, July.
    11. Dirk Alboth & Anat Lerner & Jonathan Shalev, 2001. "Profit Maximizing in Auctions of Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(4), pages 501-525, October.
    12. Luca Colombo & Gianluca Femminis & Alessandro Pavan, 2014. "Information Acquisition and Welfare," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1438-1483.
    13. Krasteva, Silvana & Yildirim, Huseyin, 2016. "Information, competition, and the quality of charities," Journal of Public Economics, Elsevier, vol. 144(C), pages 64-77.
    14. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    15. Brookins, Philip & Lightle, John P. & Ryvkin, Dmitry, 2015. "An experimental study of sorting in group contests," Labour Economics, Elsevier, vol. 35(C), pages 16-25.
    16. Eric D. Gould & Eyal Winter, 2009. "Interactions between Workers and the Technology of Production: Evidence from Professional Baseball," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 188-200, February.
    17. Arce M., Daniel G. & Sandler, Todd, 2001. "Transnational public goods: strategies and institutions," European Journal of Political Economy, Elsevier, vol. 17(3), pages 493-516, September.
    18. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
    19. Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
    20. Menezes, Flavio M. & Monteiro, Paulo K. & Temimi, Akram, 2001. "Private provision of discrete public goods with incomplete information," Journal of Mathematical Economics, Elsevier, vol. 35(4), pages 493-514, July.
    21. Barbieri, Stefano, 2017. "Voluntary public good provision with private information using order statistics," Economics Letters, Elsevier, vol. 150(C), pages 63-66.
    22. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185.
    23. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    24. Debraj Ray & Jean-Marie Baland & Olivier Dagnelie, 2007. "Inequality and Inefficiency in Joint Projects," Economic Journal, Royal Economic Society, vol. 117(522), pages 922-935, July.
    25. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    26. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-477, June.
    27. Nicola Persico, 2000. "Information Acquisition in Auctions," Econometrica, Econometric Society, vol. 68(1), pages 135-148, January.
    28. Alboth, Dirk & Lerner, Anat & Shalev, Jonathan, 2001. "Profit Maximizing in Auctions of Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(4), pages 501-525.
    29. J. Hirshleifer, 1985. "From weakest-link to best-shot: Correction," Public Choice, Springer, vol. 46(2), pages 221-223, January.
    30. Hunt Allcott & Matthew Gentzkow, 2017. "Social Media and Fake News in the 2016 Election," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 211-236, Spring.
    31. Subhasish M. Chowdhury & Iryna Topolyan, 2016. "The Attack-And-Defense Group Contests: Best Shot Versus Weakest Link," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 548-557, January.
    32. Gradstein, Mark & Nitzan, Shmuel & Slutsky, Steven, 1994. "Neutrality and the private provision of public goods with incomplete information," Economics Letters, Elsevier, vol. 46(1), pages 69-75, September.
    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. Federico Vaccari, 2023. "Influential news and policy-making," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(4), pages 1363-1418, November.

    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. Barbieri, Stefano, 2017. "Voluntary public good provision with private information using order statistics," Economics Letters, Elsevier, vol. 150(C), pages 63-66.
    2. Stefano Barbieri & David A. Malueg, 2014. "Increasing Fundraising Success by Decreasing Donor Choice," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(3), pages 372-400, June.
    3. Subhasish M. Chowdhury & Iryna Topolyan, 2016. "Best-shot versus weakest-link in political lobbying: an application of group all-pay auction," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 959-971, December.
    4. Paul Pecorino, 2015. "Olson’s Logic of Collective Action at fifty," Public Choice, Springer, vol. 162(3), pages 243-262, March.
    5. Gregor, Martin, 2015. "Task divisions in teams with complementary tasks," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 102-120.
    6. Subhasish M. Chowdhury & Dongryul Lee & Iryna Topolyan, 2016. "The Max‐Min Group Contest: Weakest‐link (Group) All‐Pay Auction," Southern Economic Journal, John Wiley & Sons, vol. 83(1), pages 105-125, July.
    7. Guillaume Cheikbossian, 2016. "The political economy of (De)centralization with complementary public goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(2), pages 315-348, August.
    8. TOSHIHIRO IHORI & MARTIN C. McGUIRE, 2007. "Collective Risk Control and Group Security: The Unexpected Consequences of Differential Risk Aversion," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 231-263, April.
    9. Ghislain Dutheil de la Rochère & Jean-Michel Josselin & Yvon Rocaboy, 2011. "The role of aggregation technologies in the provision of supranational public goods: A reconsideration of NATO’s strategies," The Review of International Organizations, Springer, vol. 6(1), pages 85-103, March.
    10. Barbieri, Stefano & Malueg, David A., 2016. "Private-information group contests: Best-shot competition," Games and Economic Behavior, Elsevier, vol. 98(C), pages 219-234.
    11. Stefano Barbieri & David Malueg, 2014. "Group efforts when performance is determined by the “best shot”," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 333-373, June.
    12. Martin Gregor, 2011. "Tradeoffs of foreign assistance for the weakest-link global public goods," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(2), pages 233-251, April.
    13. Subhasish M. Chowdhury & Iryna Topolyan, 2013. "The Attack-and-Defence Group Contests," University of East Anglia Applied and Financial Economics Working Paper Series 049, School of Economics, University of East Anglia, Norwich, UK..
    14. Konishi, Hideo & Pan, Chen-Yu, 2021. "Endogenous alliances in survival contests," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 337-358.
    15. Alejandro Caparrós & Michael Finus, 2020. "Public good agreements under the weakest‐link technology," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 555-582, June.
    16. Karlan, Dean & List, John A., 2020. "How can Bill and Melinda Gates increase other people's donations to fund public goods?," Journal of Public Economics, Elsevier, vol. 191(C).
    17. Cornes, Richard & Hartley, Roger, 2007. "Weak links, good shots and other public good games: Building on BBV," Journal of Public Economics, Elsevier, vol. 91(9), pages 1684-1707, September.
    18. Wang, Chengsi & Zudenkova, Galina, 2016. "Non-monotonic group-size effect in repeated provision of public goods," European Economic Review, Elsevier, vol. 89(C), pages 116-128.
    19. Martin Kolmar & Hendrik Rommeswinkel, 2020. "Group size and group success in conflicts," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 777-822, December.
    20. Yildirim, Huseyin, 2014. "Andreoni–McGuire algorithm and the limits of warm-glow giving," Journal of Public Economics, Elsevier, vol. 114(C), pages 101-107.

    More about this item

    Keywords

    Voluntary provision; Public good; Weakest link; Best shot; Accuracy; Commonality;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

    Statistics

    Access and download statistics

    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:spr:joecth:v:75:y:2023:i:1:d:10.1007_s00199-021-01394-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.