Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/179160 
Year of Publication: 
2017
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 8 [Issue:] 4 [Publisher:] MDPI [Place:] Basel [Year:] 2017 [Pages:] 1-23
Publisher: 
MDPI, Basel
Abstract: 
Many real-world mechanisms are 'noisy' or 'fuzzy', that is the institutions in place to implement them operate with non-negligible degrees of imprecision and error. This observation raises the more general question of whether mechanisms that work in theory are also robust to more realistic assumptions such as noise. In this paper, in the context of voluntary contribution games, we focus on a mechanism known as 'contribution-based competitive grouping'. First, we analyze how the mechanism works under noise and what happens when other assumptions such as population homogeneity are relaxed. Second, we investigate the welfare properties of the mechanism, interpreting noise as a policy instrument, and we use logit dynamic simulations to formulate mechanism design recommendations.
Subjects: 
voluntary contributions
behavioral economics
noise
heterogeneity
mechanism design
welfare
efficiency
equality
JEL: 
C73
D02
D03
D63
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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