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Efficient Public Good Provision in a Multipolar World

Author

Listed:
  • Renaud Foucart
  • Chowdhury Mohammad Sakib Anwar
  • Sonali Sen Gupta
  • Jorge Bruno

Abstract

We model 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

  • Renaud Foucart & Chowdhury Mohammad Sakib Anwar & Sonali Sen Gupta & Jorge Bruno, 2023. "Efficient Public Good Provision in a Multipolar World," Working Papers 377534420, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:377534420
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    References listed on IDEAS

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    Keywords

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    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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