IDEAS home Printed from https://ideas.repec.org/p/wap/wpaper/1604.html
   My bibliography  Save this paper

Solving the second-order free rider problem in a public goods game: An experiment using a leader support system

Author

Listed:
  • Hiroki Ozono

    (Faculty of Law, Economics and Humanities, Kagoshima University)

  • Nobuhito Jin

    (School of Psychology Practices, College of Integrated Human and Social Welfare Studies, Shukutoku University)

  • Motoki Watabe

    (School of Business, MonashUniversity, Malaysia, Jalan Lagoon Selatan)

  • Kazumi Shimizu

    (School of Political Science and Economics, Waseda University)

Abstract

To study the collective action problem, researchers have investigated public goods games (PGG), in which each member decides to contribute to a common pool that returns benefits to all members equally. Punishment of non-cooperators—free riders—can lead to high cooperation in PGG. However, the existence of second-order free riders, who do not pay punishment costs, reduces the effectiveness of punishment. We focus on a “leader support system,” in which one group leader can freely punish group followers using capital pooled through the support of group followers. In our experiment, participants were asked to engage in three stages: a PGG stage in which followers decided to cooperate for their group; a support stage in which followers decided whether to support the leader or not; and a punishment stage in which the leader could punish any follower. We found both higher cooperation and higher support for a leader achieved under linkage-type leaders—who punished both non-cooperators and non-supporters. In addition, linkage-type leaders themselves earned higher profits than other leader types because they withdrew more support. This means that a leader who effectively punishes followers could increase their own benefits and the second-order free rider problem would be solved.

Suggested Citation

  • Hiroki Ozono & Nobuhito Jin & Motoki Watabe & Kazumi Shimizu, 2016. "Solving the second-order free rider problem in a public goods game: An experiment using a leader support system," Working Papers 1604, Waseda University, Faculty of Political Science and Economics.
  • Handle: RePEc:wap:wpaper:1604
    as

    Download full text from publisher

    File URL: http://www.waseda.jp/fpse/winpec/assets/uploads/2016/06/No.E1604Ozono_Motoki_Watabe_Shimizu.pdf
    File Function: First version,
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lim Wooyoung & Zhang Jipeng, 2020. "Endogenous Authority and Enforcement in Public Goods Games," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 20(2), pages 1-22, June.
    2. Hiroki Ozono & Yoshio Kamijo & Kazumi Shimizu, 2019. "The function of peer reward and punishment in localized society: We can only “Think locally, Act locally”," Working Papers 1912, Waseda University, Faculty of Political Science and Economics.
    3. Zhang, Xiaoyang & Chen, Tong & Chen, Qiao & Li, Xueya, 2020. "Will you cooperate in case the payoff can be guaranteed?," Chaos, Solitons & Fractals, Elsevier, vol. 130(C).
    4. Hiroki Ozono & Yoshio Kamijo & Kazumi Shimizu, 2017. "Does the order of punishment matter? A comparison of pool punishment systems," Working Papers 1707, Waseda University, Faculty of Political Science and Economics.
    5. Alventosa, Adriana & Antonioni, Alberto & Hernández, Penélope, 2021. "Pool punishment in public goods games: How do sanctioners’ incentives affect us?," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 513-537.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wap:wpaper:1604. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/spwasjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Haruko Noguchi (email available below). General contact details of provider: https://edirc.repec.org/data/spwasjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.