Public Goods Game (free-rider problem)
Explore the tension between contributing to the common good and self-interested free-riding. In this game, each of four players can contribute any amount to a collective fund. The total amount contributed grows automatically by 60%. After this growth, the fund is equally divided among the four players. The optimal outcome for all players occurs when each contributes the maximum amount each round. However, each individual recognizes that they receive a quarter of the total fund regardless of their personal contribution. Therefore, while contributing less harms the community’s overall prosperity, it may provide greater immediate benefit to the individual.
