Exploring Group Cooperation in the Provision of Public Goods

Abstract

A novel version of a Voluntary Contribution Mechanism game tests how player cooperation responds to changes in incentives, i.e., payoffs that depend on performance relative to difference reference groups. Cooperation is greatest when players are competing with players in other four-person groups, intermediate when competition is diffused, and lowest when players compete in a zero-sum game within their group. These results suggest ways to strengthen cooperation inside bureaucracies responsible for environmental policies and improve compliance among actors responsible for environmental outcomes.