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Area of Science:

  • Social Dilemmas
  • Game Theory
  • Behavioral Economics

Background:

  • Voluntary contribution games model social dilemmas where individual self-interest leads to suboptimal group outcomes.
  • Assortative matching, where similar individuals interact, can improve cooperation compared to random mixing.
  • The impact of budget heterogeneity on assortative matching in public good games remains underexplored.

Purpose of the Study:

  • To investigate the robustness of assortative matching's positive effects on cooperation when agents have heterogeneous budgets.
  • To analytically and computationally assess the consequences of budget heterogeneity on public good provision efficacy.

Main Methods:

  • Analytical derivation of game outcomes under assortative matching with budget heterogeneity.
  • Computational simulations to quantify efficiency losses due to heterogeneity.
  • Parameter analysis varying public-good provision efficacy and population inequality.

Main Results:

  • Assortative matching significantly enhances cooperation and public good provision in homogeneous populations.
  • Budget heterogeneity generally leads to devastating losses in efficiency, undermining cooperation.
  • The severity of efficiency loss depends critically on the public-good provision efficacy and the degree of population inequality.

Conclusions:

  • The benefits of assortative matching in voluntary contribution games are fragile and highly susceptible to budget heterogeneity.
  • Policy or design interventions aiming to foster cooperation must account for potential inequalities in resources.
  • Future research should explore mechanisms to mitigate the negative impacts of heterogeneity in social dilemma settings.