Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Cooperation in local and global groups
() and Gabriele K. Lünser
Abstract: Multiple group memberships are the rule rather than the
exception. Locally operating groups frequently offer the advantage of
providing social recognition and higher marginal benefits to the
individual, whereas globally operating groups may be more beneficial from a
social perspective. Within a voluntary contribution environment we
experimentally investigate the tension that arises when subjects belong to
a smaller local and a larger global group. When the global public good is
more efficient individuals first attempt to cooperate in the global public
good. However, this tendency quickly unravels and cooperation in the local
public good builds up.
JEL-Codes: C92; D71; D82; H41; (follow links to similar papers)
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