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Cooperation in a risky world

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  • Vincent Théroude

    (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Adam Zylbersztejn

    () (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Vincent Théroude & Adam Zylbersztejn, 2019. "Cooperation in a risky world," Post-Print halshs-02063246, HAL.
  • Handle: RePEc:hal:journl:halshs-02063246
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02063246
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    Cited by:

    1. Caleb A. Cox & Brock Stoddard, 2018. "Common-Value Public Goods and Informational Social Dilemmas," Working Papers 18-04, Department of Economics, Appalachian State University.
    2. 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 Group Munich.

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