Laboratory experiments indicate that many people willingly contribute to public goods and punish free riders at a personal cost. We hypothesize that these individuals, called strong reciprocators, allow political parties to overcome collective action problems, thereby allowing those organizations to compete for scarce resources and to produce public goods for like-minded individuals. Using a se...

Laboratory experiments indicate that many people willingly contribute to public goods and punish free-riders at a personal cost. We hypothesize that these individuals, called strong reciprocators, allow political parties to overcome collective action problems, thereby allowing those organizations to compete for scarce resources and to produce public goods for like-minded individuals. Using a se...

Much research has focused on the deleterious effects of free-riding in public goods games, and a variety of mechanisms that suppresses cheating behavior. Here we argue that under certain conditions cheating behavior can be beneficial to the population. In a public goods game, cheaters do not pay for the cost of the public goods, yet they receive the benefit. Although this free-riding harms the ...

W study markets for information goods and find that they differ significantly from markets for traditional industrial goods. Markets for information goods in which products are vertically differentiated lack the segmentation inherent in markets for industrial goods. As a result, a monopoly will offer only a single product. Competition leads to highly concentrated information-good markets, with ...

A generic model for the monetary flow in multi-level marketing schemes for virtual goods, so called incentive management systems, is introduced and analysed. It is shown that such schemes can in principle be fair, and it is argued that they can be viably realised if the value of the distributed good is positive. It is shown how the monetary incentive a buyer receives through the scheme can be p...

ness of an element is the ratio of in-degrees over in-degrees plus out-degrees of the element, and ranges from 0 to l (Pieters et al. 1995). Elements with high abstractness scores are

As an alternative to rigid DRM measures, ways of marketing virtual goods through multi-level or networked marketing have raised some interest. This report is a first approach to multi-level markets for virtual goods from the viewpoint of theoretical economy. A generic, kinematic model for the monetary flow in multi-level markets, which quantitatively describes the incentives that buyers receive...