Games 2010, 1(4), 357-380; doi:10.3390/g1040357
Article

Coordination and Cooperation Problems in Network Good Production

1email and 1,2,* email
Received: 7 June 2010; in revised form: 7 August 2010 / Accepted: 6 September 2010 / Published: 28 September 2010
(This article belongs to the Special Issue Social Networks and Network Formation)
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract: If actors want to reach a particular goal, they are often better off forming collaborative relations and investing together rather than investing separately. We study the coordination and cooperation problems that might hinder successful collaboration in a dynamic network setting. We develop an experiment in which coordination problems are mainly due to finding partners for collaboration, while cooperation problems arise at the investment levels of partners who have already agreed to collaborate. The results show that as costs of forming links increase, groups succeed less often in solving the coordination problem. Still, if subjects are able to solve the coordination problem, they invest in a suboptimal way in the network good. It is mostly found that if cooperation is successful in terms of investment, it is due to subjects being able to monitor how much their partners invest. Moreover, subjects deal better with the coordination and cooperation problems as they gain experience.
Keywords: network formation; coordination; cooperation; experiments; collective goods
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MDPI and ACS Style

Knigge, A.; Buskens, V. Coordination and Cooperation Problems in Network Good Production. Games 2010, 1, 357-380.

AMA Style

Knigge A, Buskens V. Coordination and Cooperation Problems in Network Good Production. Games. 2010; 1(4):357-380.

Chicago/Turabian Style

Knigge, Antonie; Buskens, Vincent. 2010. "Coordination and Cooperation Problems in Network Good Production." Games 1, no. 4: 357-380.

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