When a few undermine the whole: A class of social dilemmas in ridesharing
Name:
Social-Dilemma-Ridesharing-JEB ...
Embargo:
2022-09-18
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1.528Mb
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PDF
Description:
Final Accepted Manuscript
Affiliation
Univ Arizona, Eller Coll ManagementIssue Date
2019-10Keywords
Social dilemmasRidesharing
Cost-sharing
Route choice in traffic networks
Heterogeneous decision makers
Experiment
Metadata
Show full item recordPublisher
ELSEVIERCitation
Rapoport, A., Qi, H., Mak, V., & Gisches, E. J. (2019). When a few undermine the whole: A class of social dilemmas in ridesharing. Journal of Economic Behavior & Organization, 166, 125-137.Rights
© 2019 Elsevier B.V. All rights reserved.Collection Information
This item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.Abstract
We investigate a class of social dilemmas that arise when a heterogeneous group of agents potentially benefit from a joint enterprise such as ridesharing. Participation in the enterprise incurs positive externalities to other participants; social welfare is maximized with full participation. However, if some agents find it a dominant strategy to opt out, then the potential benefit from the enterprise will decrease, leading to more members opting out. This iterated disincentivizing effect could result in massive welfare losses. We construct a game-theoretical model to implement these social dilemmas and report experimental evidence for their existence and welfare impact. (C) 2019 Elsevier B.V. All rights reserved.Note
36 month embargo; published online: 18 September 2019ISSN
0167-2681Version
Final accepted manuscriptSponsors
NSFNational Science Foundation (NSF) [SES-1418923]; University of Arizona; National Natural Science Foundation of ChinaNational Natural Science Foundation of China [71571132, 71431005]; China Scholarship Council ProgramChina Scholarship Councilae974a485f413a2113503eed53cd6c53
10.1016/j.jebo.2019.08.015