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The Effects of Group Composition and Fractionalization in a Public Goods Game: An Agent-Based Simulation

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  • Pablo Lucas
  • Sheheryar Banuri
  • Angela C. M. de Oliveira

Abstract

Behavioural economics highlights the role of social preferences in economic decisions. Further, populations are heterogeneous; suggesting that group composition may impact the ability to sustain voluntary public goods contributions. This parallels research in public economics where fractionalization negatively impacts provision. We conduct agent-based simulations of contributions in a public goods game, varying group composition and the weight individuals place on their beliefs versus their underlying social preference type.

Suggested Citation

  • Pablo Lucas & Sheheryar Banuri & Angela C. M. de Oliveira, 2012. "The Effects of Group Composition and Fractionalization in a Public Goods Game: An Agent-Based Simulation," WIDER Working Paper Series wp-2012-059, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-059
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    Keywords

    Group decision making; Public goods; Social choice;
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