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Efficient Public Good Provision Between and Within Groups

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  • Chowdhury Mohammad Sakib Anwar
  • Jorge Bruno
  • Renaud Foucart
  • Sonali SenGupta

Abstract

We generalize the model of Gallice and Monzon (2019) to incorporate a public goods game with groups, position uncertainty, and observational learning. Contributions are simultaneous within groups, but groups play sequentially based on their observation of an incomplete sample of past contributions. We show that full cooperation between and within groups is possible with self-interested players on a fixed horizon. Position uncertainty implies the existence of an equilibrium where groups of players conditionally cooperate in the hope of influencing further groups. Conditional cooperation implies that each group member is pivotal, so that efficient simultaneous provision within groups is an equilibrium.

Suggested Citation

  • Chowdhury Mohammad Sakib Anwar & Jorge Bruno & Renaud Foucart & Sonali SenGupta, 2023. "Efficient Public Good Provision Between and Within Groups," Papers 2303.10514, arXiv.org, revised Dec 2024.
  • Handle: RePEc:arx:papers:2303.10514
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    Cited by:

    1. Chowdhury Mohammad Sakib Anwar & Konstantinos Georgalos & Sonali SenGupta, 2025. "Position Uncertainty in a Prisoner's Dilemma Game : An Experiment," Papers 2504.10441, arXiv.org.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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