When a few undermine the whole: A class of social dilemmas in ridesharing

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2019
Volume: 166
Issue: C
Pages: 125-137

Authors (4)

Rapoport, Amnon Qi, Hang (not in RePEc) Mak, Vincent (not in RePEc) Gisches, Eyran J. (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate a class of social dilemmas that arise when a heterogeneous group of agents potentially benefit from a joint enterprise such as ridesharing. Participation in the enterprise incurs positive externalities to other participants; social welfare is maximized with full participation. However, if some agents find it a dominant strategy to opt out, then the potential benefit from the enterprise will decrease, leading to more members opting out. This iterated disincentivizing effect could result in massive welfare losses. We construct a game-theoretical model to implement these social dilemmas and report experimental evidence for their existence and welfare impact.

Technical Details

RePEc Handle
repec:eee:jeborg:v:166:y:2019:i:c:p:125-137
Journal Field
Theory
Author Count
4
Added to Database
2026-01-29