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Explaining Private Provision of Public Goods by Conditional Cooperation - An Evoltuionary Approach -

  • Maria Vittoria Levati

We adopt an evolutionary approach to investigate whether and when conditional cooperation can explain the voluntary contribution phenomenon often observed in public goods experiments and real life. Formally, conditional cooperation is captured by a regret parameter describing how much an individual regrets to contribute less than average. We find that the evolutionary stability of conditional cooperation depends on what is known about the (individual) regret parameters of other group members.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-44.

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Handle: RePEc:esi:discus:2002-44
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  15. Ockenfels, Axel & Selten, Reinhard, 2000. "An Experiment on the Hypothesis of Involuntary Truth-Signalling in Bargaining," Games and Economic Behavior, Elsevier, vol. 33(1), pages 90-116, October.
  16. Rachel T. A. Croson, 2007. "Theories Of Commitment, Altruism And Reciprocity: Evidence From Linear Public Goods Games," Economic Inquiry, Western Economic Association International, vol. 45(2), pages 199-216, 04.
  17. Palfrey, Thomas R & Prisbrey, Jeffrey E, 1997. "Anomalous Behavior in Public Goods Experiments: How Much and Why?," American Economic Review, American Economic Association, vol. 87(5), pages 829-46, December.
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  19. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-87, December.
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