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Reciprocity Networks and the Participation Problem

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  • Martin Dufwenberg
  • Amrish Patel

Abstract

Reciprocity can be a powerful motivation for human behaviour. Scholars argue that it is relevant in the context of private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The interaction of reciprocity with cost-sharing is critical. Neither cost-sharing nor reciprocity in isolation can solve the problem, but together they have that potential. We introduce new network notions of reciprocity relations to better understand this. Our analysis uncovers an intricate web of nuances that demonstrate the attainable yet elusive nature of a unique outcome.

Suggested Citation

  • Martin Dufwenberg & Amrish Patel, 2014. "Reciprocity Networks and the Participation Problem," CESifo Working Paper Series 4890, CESifo.
    • Handle: RePEc:ces:ceswps:_4890
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    Cited by:

    1. 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.
    2. Jang, Dooseok & Patel, Amrish & Dufwenberg, Martin, 2018. "Agreements with reciprocity: Co-financing and MOUs," Games and Economic Behavior, Elsevier, vol. 111(C), pages 85-99.
    3. Rothenhäusler, Dominik & Schweizer, Nikolaus & Szech, Nora, 2018. "Guilt in voting and public good games," European Economic Review, Elsevier, vol. 101(C), pages 664-681.
    4. Dooseok Jang & Amrish Patel & Martin Dufwenberg, 2016. "Co-financing agreements and reciprocity: When 'no deal' is a good deal," University of East Anglia School of Economics Working Paper Series 2016-12, School of Economics, University of East Anglia, Norwich, UK..
    5. Pierpaolo Battigalli & Martin Dufwenberg, 2022. "Belief-Dependent Motivations and Psychological Game Theory," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 833-882, September.
    6. Antoni Bosch-Domènech & Joaquim Silvestre, 2017. "The role of frames, numbers and risk in the frequency of cooperation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(3), pages 245-267, September.
    7. Dufwenberg, Martin & Kirchsteiger, Georg, 2019. "Modelling kindness," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 228-234.
    8. Andrea Martinangeli & Peter Martinsson & Amrish Patel, 2017. "Coordination via Redistribution," Working Papers tax-mpg-rps-2017-07, Max Planck Institute for Tax Law and Public Finance.
    9. Rezaei, Sarah & Rosenkranz, Stephanie & Weitzel, Utz & Westbrock, Bastian, 2024. "Social preferences on networks," Journal of Public Economics, Elsevier, vol. 234(C).
    10. Patel, Amrish & Smith, Alec, 2019. "Guilt and participation," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 279-295.
    11. Amrish Patel & Alec Smith, 2018. "Guilt and participation," University of East Anglia School of Economics Working Paper Series 2018-01, School of Economics, University of East Anglia, Norwich, UK..

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    More about this item

    Keywords

    discrete public good; participation; reciprocity networks; coordination; cost-sharing;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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