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Cooperation in a risky world

Author

Listed:
  • Vincent Théroude

    (Univ Lyon, Université Lumière Lyon 2, GATE L-SE UMR 5824, F-69131 Ecully, France)

  • Adam Zylbersztejn

    (Univ Lyon, Université Lumière Lyon 2, GATE L-SE UMR 5824, F-69131 Ecully, France)

Abstract

We study the effect of environmental risk on cooperation in the Voluntary Contribution Mechanism. Our baseline is the standard setting in which the personal return from the public good is deterministic, homogeneous, and publicly known. Our experimental treatments alter this classic design by making the marginal per capita return from the public good probabilistic. In the homogeneous risk treatment, the random draw is made for the whole group, while in the heterogeneous risk treatment this happens independently for each group member. Our main result is that risk does not harm cooperation either in the one-shot or in the finitely repeated version of the game. This suggests that the standard experimental methodology provides a robust and conservative measure of human cooperation.

Suggested Citation

  • Vincent Théroude & Adam Zylbersztejn, 2017. "Cooperation in a risky world," Working Papers 1704, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
  • Handle: RePEc:gat:wpaper:1704
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    References listed on IDEAS

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    Cited by:

    1. Jana Freundt & Andreas Lange, 2019. "On the Impact of Risky Private and Public Returns in the Private Provision of Public Goods - The Case of Social Investments," CESifo Working Paper Series 7458, CESifo.

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    More about this item

    Keywords

    Cooperation; Voluntary Contribution Mechanism; Environmental Risk;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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