Consider a public goods game with groups of 4. All contributions to the public account are multiplied by 1.6 and divided equally among the 4 group members. This implies that the MPCR (marginal per capita return) is:

Question

Quizplus · Accepted Answer

The MPCR is calculated by multiplying the multiplier (1.6) by the fraction of the good that returns to an individual contributor (1/4, since the total is divided equally among 4 members), which equals 0.4 (1.6 * 1/4).

Consider a Public Goods Game with Groups of 4