Consider a public goods game with groups of 5. Each dollar contributed to the public account is doubled and divided equally among the 5 group members. This implies that the MPCR (marginal per capita return) is:

Question

Quizplus · Accepted Answer

The MPCR is calculated as the total return from a contribution divided by the number of group members. Here, each dollar is doubled to $2 and then divided among 5 members, so the MPCR is $2/5 = 0.4.

Consider a Public Goods Game with Groups of 5