When formal insurance is unavailable, mutual insurance among households can serve as an alternative. This paper analyzes a game between economic agents facing uncertainty and maximizing discounted utility without enforceable contracts or access to capital markets. While autarky is always a...

We study cooperation in an environment where public good providers face the decision to accept a newcomer to their group. A bottom-up process for accepting new members to social groups reveals individual preferences to include newcomers. Alternatively, inclusion can be decided in a top-down...

Pledges feature in international climate cooperation since the 2015 Paris Agreement. We explore how differences in pledgers' trustworthiness affect outcomes in a social dilemma that parallels climate change. In an online experiment, two participants interact with a randomly matched third player...

Interrelated global crises - climate change, pandemics, loss of ecosystem services and biodiversity - pose risks that demand collective solutions. Uncertainty about others' behavior, coupled with the dependence on some to take collective efforts to mitigate risks for all (e.g. conservation of...

Mancur Olson explained in The Logic of Collective Action (1965) that the free rider problem and the paradox of participation discourage rational consumers from taking collective action to oppose policies that disadvantage them. The lack of grassroots opposition to 'nanny state' policies from...