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Cooperation in local and global groups

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  • Fellner, Gerlinde
  • Lünser, Gabriele K.

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. (author´s abstract)

Suggested Citation

  • Fellner, Gerlinde & Lünser, Gabriele K., 2008. "Cooperation in local and global groups," Department of Economics Working Paper Series 122, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:256
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    More about this item

    Keywords

    local public good; global public good; cooperation; social recognition; social interaction; experiment;
    All these keywords.

    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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