Optional participation only provides a narrow scope for sustaining cooperation
Khadija Khatun (1, 2), Chen Shen (3), and Jun Tanimoto (1, 3),, (1) Interdisciplinary Graduate School of Engineering Sciences, Kyushu, University, Japan, (2) Department of Applied Mathematics, University of, Dhaka, Bangladesh, (3) Faculty of Engineering Sciences

TL;DR
This paper explores how optional participation influences cooperation in public goods games, revealing that its effectiveness is limited and depends on the strategic motives of non-participants, with cooperation thriving mainly under specific motivations.
Contribution
It generalizes the understanding of optional participation by incorporating non-participants' payoffs and their influence, revealing the conditions under which cooperation is sustained.
Findings
Cooperation thrives when non-participants are motivated by individualistic or prosocial values.
Optimal cooperation occurs with individualistic motivations for non-participants.
Robustness to mutation slightly expands the conditions for cooperation through cyclic dominance.
Abstract
Understanding how cooperation emerges in public goods games is crucial for addressing societal challenges. While optional participation can establish cooperation without identifying cooperators, it relies on specific assumptions -- that individuals abstain and receive a non-negative payoff, or that non-participants cause damage to public goods -- which limits our understanding of its broader role. We generalize this mechanism by considering non-participants' payoffs and their potential direct influence on public goods, allowing us to examine how various strategic motives for non-participation affect cooperation. Using replicator dynamics, we find that cooperation thrives only when non-participants are motivated by individualistic or prosocial values, with individualistic motivations yielding optimal cooperation. These findings are robust to mutation, which slightly enlarges the region…
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Taxonomy
TopicsBusiness Strategy and Innovation · Experimental Behavioral Economics Studies · Digital Platforms and Economics
