Threat of Sabotage as a Driver of Collective Action

Author:

De Jaegher Kris1

Affiliation:

1. Utrecht University , The Netherlands

Abstract

AbstractA model is presented where the welfare of contributors to a public good can increase when they face an adversary who ex post sabotages their efforts. It is a best response for the adversary to maximally sabotage the smallest effort, thus increasing a defector's marginal product of effort. This creates a kink in the individual contributor's payoff function around the equilibrium effort, which can lock contributors into exerting high effort. For a sufficiently large degree of complementarity between the contributors’ efforts, the adversary increases contributors’ welfare. This result is robust when departing from several simplifying assumptions of the model.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

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