Cooperation against all predictions
In Binary Threshold Public Good (BTPG) games, n players have binary choices: cooperation or non-cooperation. If at least k players cooperate, a public good is produced. The case k = n is the Stag Hunt game with the two pure strategy equilibria E1 (all players cooperate) and E0 (no player cooperates)...
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Veröffentlicht in: | Economic inquiry 2021-07, Vol.59 (3), p.904-924 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | In Binary Threshold Public Good (BTPG) games, n players have binary choices: cooperation or non-cooperation. If at least k players cooperate, a public good is produced. The case k = n is the Stag Hunt game with the two pure strategy equilibria E1 (all players cooperate) and E0 (no player cooperates). In four rather diverse examples of four-player Stag Hunt games, three prominent concepts of equilibrium selection favor E0. Experiments, however, result in cooperation frequencies between 70.3% and 99.7%. Also for k < n, the selected equilibria clearly differ from experimental behavior. We interpret our observations by suggesting the concept Behavioral Equilibrium Selection. |
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ISSN: | 1465-7295 0095-2583 1465-7295 |
DOI: | 10.1111/ecin.12976 |