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Genomic MRI - a Public Resource for Studying Sequence Patterns within Genomic DNA
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Localized prosocial preferences, public goods, and common-pool resources.

Andrew R Tilman1, Avinash K Dixit2, Simon A Levin3

  • 1Department of Ecology and Evolutionary Biology, Princeton University, Princeton, NJ 08544.

Proceedings of the National Academy of Sciences of the United States of America
|October 10, 2018
PubMed
Summary

Prosociality, or caring for others, can help solve societal problems. This study shows that even limited, in-group focused prosociality can significantly improve collective welfare, especially when private and public inputs are poor substitutes.

Keywords:
collective actioncommon-pool resourcesgame theorylocal prosocialitypublic goods

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Area of Science:

  • Social Science
  • Behavioral Economics
  • Game Theory

Background:

  • Prosocial preferences are believed to ease collective action problems like public goods provision.
  • However, prosociality is often restricted to in-groups, potentially limiting societal benefits.

Purpose of the Study:

  • To develop a theoretical model of localized prosociality within subgroups.
  • To analyze the impact of in-group biased preferences on societal economic outcomes.
  • To quantify how localized prosociality bridges the welfare gap between Nash equilibrium and social optimum.

Main Methods:

  • Developed a general theoretical model of a society divided into subgroups.
  • Incorporated varying degrees of care for in-group versus out-group welfare.
  • Analyzed special cases to examine economic consequences of localized prosociality.

Main Results:

  • Individual contributions to public goods have differential spillover effects across groups.
  • The extent to which welfare gaps close depends on the substitutability of private and public inputs.
  • For poor substitutes, welfare gap closure is a concave function of prosociality, with low levels yielding near-optimal social welfare.

Conclusions:

  • Localized prosociality can substantially improve societal welfare, even when not universally applied.
  • The effectiveness of prosociality in closing welfare gaps is contingent on input substitutability.
  • Even limited, in-group focused prosociality can be highly effective in achieving near-social optimum outcomes.