Emergence of Cooperation in Public Goods Problems

2008 ◽  
Vol 26 (1) ◽  
pp. 47-61
Author(s):  
Dalibor Roháč

Abstract In this paper, we discuss several issues related to public goods provision. Unlike many Austrians, we do not think that the concept of public goods - or of collective action - is an inherently flawed idea, even though we reject the alleged welfare implications of public goods theory, as proposed by orthodox public finance literature. We then argue that the structure of a generic public goods problem is more a game of chicken or an assurance game than a prisoner's dilemma and that this has important implications with regard to the plausibility of cooperative outcomes. Namely, when the public goods problem has the weakest-link structure and can be represented as an assurance game, then the cooperative outcome will be self-enforcing. In many cases, the public goods problems can be transformed into weakest-link games or different mechanisms can be found to ensure cooperation. We also discuss the difference between a public goods problem and collusion. We assert that, unlike public goods problems, collusive agreements have the structure of a prisoner's dilemma. Overall, our paper suggests that there are reasons to be optimistic about stability and efficiency of stateless societal orders.

2021 ◽  
Vol 94 (11) ◽  
Author(s):  
Tetsushi Ohdaira

Abstract In the previous studies, the author proposes the payoff-difference-based probabilistic peer-punishment that the probability of punishing a defector increases as the difference of payoff between a player and a defector increases and shows that the proposed peer-punishment effectively increases the number of cooperators and the average payoff of all players. On the other hand, reward as well as punishment is considered to be a mechanism promoting cooperation, and many studies have discussed the effect of reward in the public goods game, a multiplayer version of the prisoner’s dilemma game. Based on the discussion of those existing studies, this study introduces the payoff-difference-based probabilistic reward that the probability of rewarding a cooperator increases as the difference of payoff between a player and a cooperator increases. The author utilizes the framework of the spatial prisoner’s dilemma game of the previous study and shows that the reward of this study realizes the evolution of cooperation except some cases. Graphic abstract


1982 ◽  
Vol 30 (3) ◽  
pp. 350-370 ◽  
Author(s):  
Michael Taylor ◽  
Hugh Ward

The game-theoretic literature on the problem of the provision of public goods has concentrated almost exclusively on one model—the Prisoner's Dilemma game. Several other simple games may be more applicable in certain situations. In particular, the game structure known as Chicken seems to provide a better description of an important sub-class of games where the good is lumpy rather than continuously divisible. Many environmental public goods belong to this category. A distinct paradox of public-goods provision occurs within games of Chicken.


2016 ◽  
Author(s):  
Lin Chao ◽  
Santiago F. Elena

The existence of cooperation, or the production of public goods, is an evolutionary problem. Cooperation is not favored because the Prisoner’s Dilemma (PD) game drives cooperators to extinction. We have re-analyzed this problem by using RNA viruses to motivate a model for the evolution of cooperation. Gene products are the public goods and group size is the number of virions co-infecting the same host cell. Our results show that if the tradeoff between replication and production of gene products is linear, PD is observed. However, if the tradeoff is nonlinear, the viruses evolve into separate lineages of ultra-defectors and ultra-cooperators as group size is increased. The nonlinearity was justified by the existence of real viral ultra-defectors, known as defective interfering (DI) particles, which gain a nonlinear advantage by being smaller. The evolution of ultra-defectors and ultra-cooperators creates the Snow Drift game, which promotes high-level production of public goods.


2020 ◽  
Author(s):  
Ali Seyhun Saral

Conditional cooperation has been a common explanation for the observed cooperation, and its decline in social dilemma experiments. Numerous studies showed that most of the experimental subjects can be categorized into three types: conditional cooperators, self-maximizers and hump-shaped (triangle) cooperators. In this study, I investigate conditional strategy types and their role on the emergence of cooperation and their evolutionary success. For this purpose, I use an extension of the Iterated Prisoner's Dilemma Game. The agents are characterized by their initial move and their conditional responses to each level of cooperation. By using simulations, I estimate the likelihood of cooperation for different probability of continuations.I show that, when the continuation probability is sufficiently large, high levels cooperation is achieved. In this case, the most successful strategies are those who employ an all-or-none type of conditional cooperation, followed by perfect conditional cooperators. In intermediate levels of continuation probabilities, however, hump-shaped contributor types are the ones that are most likely to thrive, followed by imperfect conditional cooperators. Those agents cooperate in a medium level of cooperation within themselves and each other. The results explain the existence of hump-shaped type of cooperators with a purely payoff-based reasoning, as opposed to previous attempts to explain this strategy with psychological mechanisms.


Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 63
Author(s):  
Ramzi Suleiman ◽  
Yuval Samid

Experiments using the public goods game have repeatedly shown that in cooperative social environments, punishment makes cooperation flourish, and withholding punishment makes cooperation collapse. In less cooperative social environments, where antisocial punishment has been detected, punishment was detrimental to cooperation. The success of punishment in enhancing cooperation was explained as deterrence of free riders by cooperative strong reciprocators, who were willing to pay the cost of punishing them, whereas in environments in which punishment diminished cooperation, antisocial punishment was explained as revenge by low cooperators against high cooperators suspected of punishing them in previous rounds. The present paper reconsiders the generality of both explanations. Using data from a public goods experiment with punishment, conducted by the authors on Israeli subjects (Study 1), and from a study published in Science using sixteen participant pools from cities around the world (Study 2), we found that: 1. The effect of punishment on the emergence of cooperation was mainly due to contributors increasing their cooperation, rather than from free riders being deterred. 2. Participants adhered to different contribution and punishment strategies. Some cooperated and did not punish (‘cooperators’); others cooperated and punished free riders (‘strong reciprocators’); a third subgroup punished upward and downward relative to their own contribution (‘norm-keepers’); and a small sub-group punished only cooperators (‘antisocial punishers’). 3. Clear societal differences emerged in the mix of the four participant types, with high-contributing pools characterized by higher ratios of ‘strong reciprocators’, and ‘cooperators’, and low-contributing pools characterized by a higher ratio of ‘norm keepers’. 4. The fraction of ‘strong reciprocators’ out of the total punishers emerged as a strong predictor of the groups’ level of cooperation and success in providing the public goods.


2019 ◽  
Vol 31 (4) ◽  
pp. 371-408
Author(s):  
Valerio Capraro ◽  
Joseph Y Halpern

In the past few decades, numerous experiments have shown that humans do not always behave so as to maximize their material payoff. Cooperative behavior when noncooperation is a dominant strategy (with respect to the material payoffs) is particularly puzzling. Here we propose a novel approach to explain cooperation, assuming what Halpern and Pass call translucent players. Typically, players are assumed to be opaque, in the sense that a deviation by one player in a normal-form game does not affect the strategies used by other players. However, a player may believe that if he switches from one strategy to another, the fact that he chooses to switch may be visible to the other players. For example, if he chooses to defect in Prisoner’s Dilemma, the other player may sense his guilt. We show that by assuming translucent players, we can recover many of the regularities observed in human behavior in well-studied games such as Prisoner’s Dilemma, Traveler’s Dilemma, Bertrand Competition, and the Public Goods game. The approach can also be extended to take into account a player’s concerns that his social group (or God) may observe his actions. This extension helps explain prosocial behavior in situations in which previous models of social behavior fail to make correct predictions (e.g. conflict situations and situations where there is a trade-off between equity and efficiency).


2018 ◽  
Vol 72 (3) ◽  
pp. 669-685 ◽  
Author(s):  
Trey Billing

Although countries throughout the developing world continue to increase their number of subnational administrative units, the consequences of administrative unit creation remain poorly understood. This paper argues that newly created administrative units face relative difficulty generating resources and staffing a full and competent bureaucracy, and as a result, are less capable of providing public goods to their constituencies. These challenges to administrative capacity are less consequential within mother units that were carved apart to create new splinter units and are entirely absent in nonsplitting units. Proxying the local provision of public goods with a measure of nighttime light intensity in Burkina Faso, the findings indicate that the public goods provision in newly created splinter provinces dropped significantly relative to prefragmentation levels, while other administrative units remained largely unaffected.


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