Contests over Public Goods: Evolutionary Stability and the Free-Rider Problem

Arbeitspapier

We analyze group contests for public goods by applying the solution concept of an evolutionary stable strategy (ESS). We show that a global ESS cannot exist, because a mutant free-rider can always invade group behavior successfully. There does exist, however, a unique local ESS, which we identify with evolutionary equilibrium. It coincides with Nash equilibrium, the hitherto dominant solution concept in contest theory, if and only if groups are symmetric. For asymmetric groups it always proposes a different and arguably more sensible solution than Nash equilibrium. We explore the properties of (local) ESS in detail.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 713

Classification and Topics

• Classification: Wirtschaft
• Subject: contests ; public goods ; evolutionary stability.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Leininger, Wolfgang
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/75922
• Last update: 10.03.2025, 11:45 AM CET