Quotation Foster, Gigi, Frijters, Paul, Greiner, Ben. 2017. Challenges for Market and Institutional Design when Countering Exploitation Strategies. In: Investors and Exploiters in Ecology and Economics: Principles and Applications, Hrsg. L-A. Giraldeau, P. Heeb, and M. Kosfeld, 171-187. Cambridge, MA: MITPress.


RIS


BibTeX

Abstract

Cooperation within larger groups is often endangered by incentives to free ride. One goal of market and institutional design is to create environments in which socially efficient cooperation can be achieved. The main point in this chapter is that only considering first-order incentives to cooperate within a larger group may not be suffi cient, as subcoalitions display reciprocal behavior despite the incentives to renege. Three related complications are discussed: (a) exploitative behavior is often coordinated in subgroup coalitions, (b) natural within-group resistance to exploitation already exists, and (c) the actions of group members can often only be imperfectly monitored. Given these realities, implications of current research for applied market and institutional design are outlined.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Chapter in edited volume
Language English
Title Challenges for Market and Institutional Design when Countering Exploitation Strategies
Title of whole publication Investors and Exploiters in Ecology and Economics: Principles and Applications
Editor L-A. Giraldeau, P. Heeb, and M. Kosfeld
Page from 171
Page to 187
Location Cambridge, MA
Publisher MITPress
Year 2017
Reviewed? Y
URL https://mitpress.mit.edu/books/investors-and-exploiters-ecology-and-economics
ISBN 9780262036122

Associations

People
Greiner, Ben (Details)
External
Foster, Gigi (University of New South Wales, Australia)
Frijters, Paul (London School of Economics, United Kingdom)
Organization
Institute for Markets and Strategy IN (Details)
Competence Center for Experimental Research WE (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
Google Scholar: Search