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Using rewards reasonably: The effects of stratified-rewards in public goods game

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  • Chen, Qiao
  • Chen, Tong
  • Yang, Ran

Abstract

This paper is inspired by the stratified-rewards adopted by rural organizers. Since this method has been used for many years, this paper attempts to explore the feasibility of it. We take into account of individuals’ self-assessment of face, asynchronous decision-making and individuals’ expectations for their neighbors, take available funds and standard deviation as the main indicators and then use agent-based model to simulate the effects of stratified-rewards. Our results show that cooperation can be maintained or promoted slightly if the total number of individuals who can gain rewards is not large. If organizers want to gain more available funds, they need to expand the scope of reward. But they should control the number of individuals who can receive higher rewards this time. Otherwise, the available funds may less than the initial value, though all individuals choose to cooperate. Of course, controlling costs is also important. In general, organizers can get more available funds at low cost if they do it properly.

Suggested Citation

  • Chen, Qiao & Chen, Tong & Yang, Ran, 2019. "Using rewards reasonably: The effects of stratified-rewards in public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 120(C), pages 67-74.
    • Handle: RePEc:eee:chsofr:v:120:y:2019:i:c:p:67-74
    DOI: 10.1016/j.chaos.2019.01.018
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