On a mechanism that improves efficiency and reduces inequality in voluntary contribution games

B-Tier
Journal: Games and Economic Behavior
Year: 2025
Volume: 150
Issue: C
Pages: 518-536

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We consider the class of linear voluntary contribution games under the general assumption of heterogeneous endowments. In this context, we generalize the Galbraith Mechanism (GM) and assess its performance relative to a fixed equal sharing allocation in both theory and experiments. Three main empirical results emerge. First, the GM raises average contributions significantly above those under an equal-shares allocation. Second, the GM simultaneously reduces income inequality as it improves efficiency. Third, a player's contribution and allocation behavior is sensitive to her position in the endowment distribution. In all their decision-making, agents consistently place greater emphasis on absolute contribution levels when they are rich, and on contribution ratios (contributions relative to endowments) when they are poor.

Technical Details

RePEc Handle
repec:eee:gamebe:v:150:y:2025:i:c:p:518-536
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25