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Solving the second-order free rider problem in a public goods game: An experiment using a leader support system
Hiroki Ozono1, Nobuhito Jin2, Motoki Watabe3
1Faculty of Law, Economics and Humanities, Kagoshima University, 1-21-30, Korimoto, Kagoshima 890-0065, Japan.
Scientific Reports
|December 10, 2016
Summary
Introducing a leader support system enhances cooperation in public goods games (PGG). Leaders who punish both non-cooperators and non-supporters (linkage-type) solve the second-order free rider problem and increase their own profits.
Area of Science:
- Behavioral Economics
- Game Theory
- Social Dilemmas
Background:
- Punishing non-cooperators can increase cooperation in public goods games (PGG).
- Second-order free riders, who avoid punishment costs, undermine punishment effectiveness.
- A leader support system is proposed to address this by pooling follower resources for leader-initiated punishment.
Purpose of the Study:
- To investigate the effectiveness of a leader support system in promoting cooperation within public goods games.
- To examine the impact of leader punishment strategies on cooperation, follower support, and leader profits.
- To determine if a leader support system can resolve the second-order free rider problem.
Main Methods:
- Experimental economics using a multi-stage game involving PGG, follower support, and leader punishment.
- Comparison between a support-present condition (followers fund leader punishment) and a no-support condition (external funding).
- Analysis of cooperation levels, follower support rates, and leader profits under different leader types (linkage-type vs. others).
Main Results:
- Punishment occurred more frequently when followers supported the leader.
- Linkage-type leaders, who punished both non-cooperators and non-supporters, achieved higher cooperation and follower support.
- Linkage-type leaders also secured higher personal profits by withdrawing more support.
Conclusions:
- A leader support system effectively increases punishment frequency and cooperation in PGG.
- Linkage-type leadership resolves the second-order free rider problem by incentivizing leaders to punish broadly.
- Leaders who implement effective, broad punishment strategies can enhance both group cooperation and their own financial gains.
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