IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v512y2018icp925-934.html
   My bibliography  Save this article

The impact of lotteries on cooperation in the public goods game

Author

Listed:
  • Yang, Ran
  • Chen, Tong
  • Chen, Qiao

Abstract

Lottery tickets have a sustained appeal to people, but the effect of lottery on cooperative behaviors in the public goods game (PGG) is not clear. Here we come up with the lottery reward mechanism to investigate the evolution of cooperation, which considers the individual risk appetite heterogeneity and lottery utility at the same time. Evolutionary results show that cooperators dominate the situation and nearly reach a state of global cooperation with the advent of lottery tickets. The greater the winning rate ( w) or the higher lottery bonus (R), the easier the cooperation will be. Besides, the combination of a moderate value of w and a small value of R can help the organizer who is responsible for the provision of public goods, to achieve the optimal result in stimulating collective donations. Our research not only helps organizers save costs in the provision of public goods, but also helps us understand the role of lotteries in promoting cooperation.

Suggested Citation

  • Yang, Ran & Chen, Tong & Chen, Qiao, 2018. "The impact of lotteries on cooperation in the public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 512(C), pages 925-934.
    • Handle: RePEc:eee:phsmap:v:512:y:2018:i:c:p:925-934
    DOI: 10.1016/j.physa.2018.08.052
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437118309920
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2018.08.052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Prasanna Gai & Nicholas Vause, 2006. "Measuring Investors' Risk Appetite," International Journal of Central Banking, International Journal of Central Banking, vol. 2(1), March.
    2. A. Szolnoki & M. Perc & G. Szabó, 2008. "Diversity of reproduction rate supports cooperation in the prisoner's dilemma game on complex networks," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 61(4), pages 505-509, February.
    3. Keke Huang & Tao Wang & Yuan Cheng & Xiaoping Zheng, 2015. "Effect of Heterogeneous Investments on the Evolution of Cooperation in Spatial Public Goods Game," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-10, March.
    4. Wang, Zhen & Chen, Tong & Wang, Yongjie, 2017. "Leadership by example promotes the emergence of cooperation in public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 101(C), pages 100-105.
    5. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 747-782.
    6. Peter Kuhn & Peter Kooreman & Adriaan Soetevent & Arie Kapteyn, 2011. "The Effects of Lottery Prizes on Winners and Their Neighbors: Evidence from the Dutch Postcode Lottery," American Economic Review, American Economic Association, vol. 101(5), pages 2226-2247, August.
    7. Francisco C. Santos & Marta D. Santos & Jorge M. Pacheco, 2008. "Social diversity promotes the emergence of cooperation in public goods games," Nature, Nature, vol. 454(7201), pages 213-216, July.
    8. Andreas Lange & John A. List & Michael K. Price, 2007. "Using Lotteries To Finance Public Goods: Theory And Experimental Evidence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 901-927, August.
    9. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    10. Rand, David Gertler & Dreber, Anna & Fudenberg, Drew & Ellingson, Tore & Nowak, Martin A., 2009. "Positive Interactions Promote Public Cooperation," Scholarly Articles 3804483, Harvard University Department of Economics.
    11. Xia, Cheng-yi & Ma, Zhi-qin & Wang, Zhen & Wang, Juan, 2012. "Evaluating fitness by integrating the highest payoff within the neighborhood promotes cooperation in social dilemmas," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(24), pages 6440-6447.
    12. Zhen Wang & Lin Wang & Zi-Yu Yin & Cheng-Yi Xia, 2012. "Inferring Reputation Promotes the Evolution of Cooperation in Spatial Social Dilemma Games," PLOS ONE, Public Library of Science, vol. 7(7), pages 1-9, July.
    13. Wu, Te & Fu, Feng & Dou, Puxuan & Wang, Long, 2014. "Social influence promotes cooperation in the public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 413(C), pages 86-93.
    14. Franke, Jörg & Leininger, Wolfgang, 2014. "On the efficient provision of public goods by means of biased lotteries: The two player case," Economics Letters, Elsevier, vol. 125(3), pages 436-439.
    15. Wang, Yongjie & Chen, Tong & Chen, Qiao & Si, Guangrun, 2017. "Emotional decisions in structured populations for the evolution of public cooperation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 475-481.
    16. Wang, Le & Chen, Tong & You, Xinshang & Wang, Yongjie, 2018. "The effect of wealth-based anti-expectation behaviors on public cooperation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 493(C), pages 84-93.
    17. Chen, Qiao & Chen, Tong & Wang, Yongjie, 2017. "Publishing the donation list incompletely promotes the emergence of cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 310(C), pages 48-56.
    18. Li, Chao & Wang, Li & Sun, Shiwen & Xia, Chengyi, 2018. "Identification of influential spreaders based on classified neighbors in real-world complex networks," Applied Mathematics and Computation, Elsevier, vol. 320(C), pages 512-523.
    19. Colasante, Annarita, 2017. "Selection of the distributional rule as an alternative tool to foster cooperation in a Public Good Game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 482-492.
    20. Wang, Yongjie & Chen, Tong, 2015. "Heuristics guide cooperative behaviors in public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 439(C), pages 59-65.
    21. Sabrina Teyssier, 2012. "Inequity and risk aversion in sequential public good games," Public Choice, Springer, vol. 151(1), pages 91-119, April.
    22. John Morgan, 2000. "Financing Public Goods by Means of Lotteries," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 761-784.
    23. Mellers, Barbara A. & Chang, Shi-jie, 1994. "Representations of Risk Judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 57(2), pages 167-184, February.
    24. Teng, Xian & Yan, Shu & Tang, Shaoting & Pei, Sen & Li, Weihua & Zheng, Zhiming, 2014. "Individual behavior and social wealth in the spatial public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 402(C), pages 141-149.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Xiaoyang & Chen, Tong & Chen, Qiao & Li, Xueya, 2020. "Will you cooperate in case the payoff can be guaranteed?," Chaos, Solitons & Fractals, Elsevier, vol. 130(C).
    2. Mingze Wu & Yueji Zhu, 2023. "Does Farmers’ Lottery Participation Affect Technical Efficiency of Banana Production in Rural China?," Agriculture, MDPI, vol. 13(4), pages 1-17, March.
    3. Zhang, Zaisheng & Song, Fang & Song, Zongbin, 2020. "Promoting knowledge sharing in the workplace: Punishment v. reward," Chaos, Solitons & Fractals, Elsevier, vol. 131(C).
    4. Jiao, Yuhang & Chen, Tong & Chen, Qiao, 2020. "The impact of expressing willingness to cooperate on cooperation in public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    5. Wang, Le & Chen, Tong & Wu, Zhenghong, 2021. "Promoting cooperation by reputation scoring mechanism based on historical donations in public goods game," Applied Mathematics and Computation, Elsevier, vol. 390(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Qiao & Chen, Tong & Wang, Yongjie, 2019. "Cleverly handling the donation information can promote cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 346(C), pages 363-373.
    2. Wang, Le & Chen, Tong & You, Xinshang & Wang, Yongjie, 2018. "The effect of wealth-based anti-expectation behaviors on public cooperation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 493(C), pages 84-93.
    3. Quan, Ji & Yang, Xiukang & Wang, Xianjia, 2018. "Spatial public goods game with continuous contributions based on Particle Swarm Optimization learning and the evolution of cooperation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 505(C), pages 973-983.
    4. Fan, Ruguo & Zhang, Yingqing & Luo, Ming & Zhang, Hongjuan, 2017. "Promotion of cooperation induced by heterogeneity of both investment and payoff allocation in spatial public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 465(C), pages 454-463.
    5. Wang, Le & Chen, Tong & Wu, Zhenghong, 2021. "Promoting cooperation by reputation scoring mechanism based on historical donations in public goods game," Applied Mathematics and Computation, Elsevier, vol. 390(C).
    6. 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.
    7. Quan, Ji & Tang, Caixia & Wang, Xianjia, 2021. "Reputation-based discount effect in imitation on the evolution of cooperation in spatial public goods games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 563(C).
    8. Wang, Zhen & Chen, Tong & Wang, Yongjie, 2017. "Leadership by example promotes the emergence of cooperation in public goods game," Chaos, Solitons & Fractals, Elsevier, vol. 101(C), pages 100-105.
    9. Lange, Andreas & List, John A. & Price, Michael K., 2007. "A fundraising mechanism inspired by historical tontines: Theory and experimental evidence," Journal of Public Economics, Elsevier, vol. 91(9), pages 1750-1782, September.
    10. Zhenghong Wu & Huan Huang & Qinghu Liao, 2021. "The study on the role of dedicators on promoting cooperation in public goods game," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-17, September.
    11. Chen, Qiao & Chen, Tong & Wang, Yongjie, 2017. "Publishing the donation list incompletely promotes the emergence of cooperation in public goods game," Applied Mathematics and Computation, Elsevier, vol. 310(C), pages 48-56.
    12. Lu, Peng, 2015. "Individual choice and reputation distribution of cooperative behaviors among heterogeneous groups," Chaos, Solitons & Fractals, Elsevier, vol. 77(C), pages 39-46.
    13. Liu, Tracy Xiao & Lu, Jingfeng & Wang, Zhewei, 2022. "Efficient public good provision by lotteries with nonlinear pricing," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 680-698.
    14. Lu, Peng, 2015. "Imitating winner or sympathizing loser? Quadratic effects on cooperative behavior in prisoners’ dilemma games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 327-337.
    15. Wang, Yongjie & Chen, Tong, 2015. "Heuristics guide cooperative behaviors in public goods game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 439(C), pages 59-65.
    16. Lu, Peng, 2015. "Learn good from bad: Effects of good and bad neighbors in spatial prisoners’ dilemma games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 351-358.
    17. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    18. Lange, Andreas, 2006. "Providing public goods in two steps," Economics Letters, Elsevier, vol. 91(2), pages 173-178, May.
    19. Wang, Chengjiang & Wang, Li & Wang, Juan & Sun, Shiwen & Xia, Chengyi, 2017. "Inferring the reputation enhances the cooperation in the public goods game on interdependent lattices," Applied Mathematics and Computation, Elsevier, vol. 293(C), pages 18-29.
    20. Andreas Lange & Andrew Stocking, 2009. "Charitable Memberships, Volunteering, and Discounts: Evidence from a Large-Scale Online Field Experiment," NBER Working Papers 14941, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:512:y:2018:i:c:p:925-934. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.