A Coevolutionary Model of Free Riding Behavior: Replicator Dynamics as an Explanation of the Experimental Results

Abstract

"The predictions of current public goods theory are often inconsistent with the results of public goods experiments. In an effort to understand these anomalies, we propose a simple model of decision making based on evolutionary dynamics. The underlying model appears to be intuitively plausible, and is consistent wit a variety of behavioral models. Despite the model's apparent simplicity, it produces a rich set of predictions. We find a striking parallel between the dynamics generated by this model and the experimental findings. In particular, the model predicts the decay toward free riding, as well as the patterns observed over the various group size and marginal return conditions."