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Efficient Public Good Provision in a Multipolar World

Research output: Working paper

Published
Publication date5/03/2023
PublisherLancaster University, Department of Economics
<mark>Original language</mark>English

Publication series

NameEconomics Working Papers Series

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.