LDST 102 Final: Exam Study Guide at Richmond

• School: University of Richmond
• Department: Leadership Studies
• Course: LDST 102
• Professor: All

Document Summary

Leadership and the social sciences: final exam review: public good, free rider problem. Task: subjects are put into groups, mostly anonymous. Tokens can be allocated: private account 1 to 1, group account, each token multiplied and divided equally among the group. Pareto efficient: all contribute full endowment to group. Ambiguity, larger groups (multiplier stays the same), playing with out group: nonexcludable. If the good is produced, no one can be excluded from consuming it: nonrival consumption. If one person consumes the good, that does not diminish the amount available for others: marginal per capita return. A contribution of one unit by anyone means every member of the group consumes 1 2 (mcpr) of a unit. The free-rider problem occurs when those who benefit from resources, public goods, or services do not pay for them, which results in an underprovision of those goods or services: ultimatum game. Task: two players must divide a fixed amount ().