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Cooperation in local and global groups

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  • Gerlinde Fellner

    () (Department of Economics, Vienna University of Economics & B.A.)

  • Gabriele K. Lünser

    () (University College London, Department of Economics & ELSE)

Abstract

Multiple group memberships are the rule rather than the exception. Locally operating groups frequently offer the advantage of providing social recognition and higher marginal benefits to the individual, whereas globally operating groups may be more beneficial from a social perspective. Within a voluntary contribution environment we experimentally investigate the tension that arises when subjects belong to a smaller local and a larger global group. When the global public good is more efficient individuals first attempt to cooperate in the global public good. However, this tendency quickly unravels and cooperation in the local public good builds up.

Suggested Citation

  • Gerlinde Fellner & Gabriele K. Lünser, 2008. "Cooperation in local and global groups," Department of Economics Working Papers wuwp122, Vienna University of Economics and Business, Department of Economics.
  • Handle: RePEc:wiw:wiwwuw:wuwp122
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    Cited by:

    1. Matthew W. McCarter & Anya C. Samak & Roman M. Sheremeta, 2013. "Divided Loyalties or Conditional Cooperation? An experimental study of contributions to multiple public goods," Working Papers 13-08, Chapman University, Economic Science Institute.
    2. Kohei Nitta, 2014. "The Effect of Income Heterogeneity in An Experiment with Global and Local Public Goods," Working Papers 201403, University of Hawaii at Manoa, Department of Economics.
    3. Martin G. Kocher & Fangfang Tan & Jing Yu, 2014. "Providing global public goods: Electoral delegation and cooperation," Working Papers tax-mpg-rps-2014-12_2, Max Planck Institute for Tax Law and Public Finance.
    4. Luca Corazzini & Christopher Cotton & Paola Valbonesi, 2013. "Too many charities? Insight from an experiment with multiple public goods and contribution thresholds," Working Papers 2013-13, University of Miami, Department of Economics.
    5. Anya C. Savikhin & Roman M. Sheremeta, 2013. "Simultaneous Decision-Making In Competitive And Cooperative Environments," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1311-1323, April.
    6. Diederich, Johannes & Goeschl, Timo, 2017. "Does Mitigation Begin At Home?," Working Papers 0634, University of Heidelberg, Department of Economics.
    7. Gallier, Carlo & Goeschl, Timo & Kesternich, Martin & Lohse, Johannes & Reif, Christiane & Römer, Daniel, 2017. "Leveling up? An inter-neighborhood experiment on parochialism and the efficiency of multi-level public goods provision," Working Papers 0630, University of Heidelberg, Department of Economics.
    8. Beekman, Gonne & Cheung, Stephen L. & Levely, Ian, 2017. "The effect of conflict history on cooperation within and between groups: Evidence from a laboratory experiment," Journal of Economic Psychology, Elsevier, vol. 63(C), pages 168-183.
    9. Tjaša Bjedov & Simon Lapointe & Thierry Madiès & Marie Villeval, 2018. "Does decentralization of decisions increase the stability of large groups?," Working Papers halshs-01691475, HAL.
    10. Kesternich, Martin & Goeschl, Timo & Lohse, Johannes & Römer, Daniel & Reif, Christiane, 2016. "An online experiment on cooperation and groupishness across urban districts," Annual Conference 2016 (Augsburg): Demographic Change 145848, Verein für Socialpolitik / German Economic Association.
    11. Corazzini, Luca & Cotton, Christopher & Valbonesi, Paola, 2015. "Donor coordination in project funding: Evidence from a threshold public goods experiment," Journal of Public Economics, Elsevier, vol. 128(C), pages 16-29.
    12. Marianna Baggio & Luigi Mittone, 2015. "Grandparents Matter: Perspectives on Intergenerational Altruism. An Experiment on Family Dynamic Spillovers in Public Goods Games," CEEL Working Papers 1502, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.

    More about this item

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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