Producing public goods in networks: Some effects of social comparison and endogenous network change

As actors participate in the production of public goods, processes of social comparison may affect the decisions about the individual contributions as well as the endogenously changing structure of an underlying social network. This leads to the transformation of an ordinary n-player Prisoner's Dilemma of collective action into an n-player coordination game. The paper uses agent-based simulations to trace the formation of public goods while varying network characteristics, such as density, segregation, or the strength of relationships. Additionally, the usage of both a forward- and a backward-looking agent model shows possible implications of different assumptions about the actors’ decision making.

► A model of a dynamic network with social comparison processes is considered.
► The network members are engaged in collective action.
► The success of the collective action depends on the initial network structure.
► Computer simulations show this relationship.