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Cooperation and free riding with moral cost

Author

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  • Denis Phan

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study social organizations withpossible coexistence at equilibrium ofcooperating individuals and pure consumers(free-riders). We investigate this polymorphicequilibrium using a game-theoretic approach anda statistical physics analysis of a simple model.The agents face a binary decision problem:whether to contribute or not to the public good,through the maximization of an additive utilitythat has two competing terms, a fixed cost forcooperating and an idiosyncratic moral cost forfree-riding proportional to the fraction ofcooperators. We study the equilibria regimes ofthis model. We show that there is a fraction ofexpected cooperators below which cooperationfails to emerge. Besides the homogeneous stableequilibria (everybody cooperates or everybodyfree-rides), it exists a solution in whichcooperators coexist with free-riders. Thispolymorphic equilibrium is a consequence of theheterogeneous (idiosyncratic) perceptions of thesocial reproval by the different individuals. Weprovide analytic results in the case of a simpledistribution of the idiosyncratic moral weights,and discuss them on the basis of concepts ofgame theory.

Suggested Citation

  • Denis Phan, 2005. "Cooperation and free riding with moral cost," Post-Print halshs-00105849, HAL.
  • Handle: RePEc:hal:journl:halshs-00105849
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    Cited by:

    1. Y. P. Ma & S. Gonçalves & S. Mignot & J.-P. Nadal & M. B. Gordon, 2009. "Cycles of cooperation and free-riding in social systems," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 71(4), pages 597-610, October.
    2. Roger Waldeck, 2016. "Modeling criminality: the impact of emotions, norms and interaction structures," Computational and Mathematical Organization Theory, Springer, vol. 22(2), pages 135-160, June.

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