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Efficient Public Good Provision in a Multipolar World

Author

Listed:
  • Sakib Anwar, Chowdhury Mohammad

    (BLDT, University of Winchester)

  • Bruno, Jorge

    (BLDT, University of Winchester)

  • Foucart, Renaud

    (Department of Economics, Lancaster University.)

  • SenGupta, Sonali

    (Queens Management School, Queen’s University Belfast.)

Abstract

We model a public goods game with groups, position uncertainty, and observational learning. Contributions are simultaneous within groups, but groups play sequentially based on their observation of an incomplete sample of past contributions. We show that full cooperation between and within groups is possible with self-interested players on a fixed horizon. Position uncertainty implies the existence of an equilibrium where groups of players conditionally cooperate in the hope of influencing further groups. Conditional cooperation implies that each group member is pivotal, so that efficient simultaneous provision within groups is an equilibrium.

Suggested Citation

  • Sakib Anwar, Chowdhury Mohammad & Bruno, Jorge & Foucart, Renaud & SenGupta, Sonali, 2023. "Efficient Public Good Provision in a Multipolar World," CRETA Online Discussion Paper Series 77, Centre for Research in Economic Theory and its Applications CRETA.
    • Handle: RePEc:wrk:wcreta:77
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Goods ; Groups ; Position Uncertainty ; Voluntary Contributions JEL codes: C72 ; D82 ; H41;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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