Information asymmetry in public goods games

Abstract

In this study, the concept of basic income is treated as an information advantage lowering environmental uncertainty of future income. Decision-making is analyzed in the context of linear public goods games, following a novel theoretical setup that allows for the isolation of information asymmetry. Furthermore, a formula to quantify the information asymmetry is deduced. Research findings from two simulated public goods games indicate that exposing participants to less environmental uncertainty, in form of granting a basic income each period, leads to significantly lower voluntary contributions to the group account promoting opportunistic behavior. Also, evidence is found suggesting that the type of uncertainty and perceptions of fairness can influence this effect.

Date of Award	26 Apr 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Filipa de Almeida (Supervisor)