Suppose in a public good game, the group size is held constant but the MPCR is reduced from 0.8 to 0.4. Which of the following would be true?

Question

Quizplus · Accepted Answer

When the Marginal Per Capita Return (MPCR) is reduced, each individual's contribution to the public good generates less benefit for each member of the group, including the contributor. This makes contributing to the public good less attractive compared to keeping money in one's private account, leading to an increase in contributions to private accounts.

Suppose in a Public Good Game, the Group Size Is