Abstract:We study how cooperation in one-shot Public Goods Games with large group sizes is affected by the presence of a slight chance of severe adverse events. We find that cooperation is substantial, notwithstanding a low marginal return of contributions. The cooperation level is comparable to what is found in similar settings for small-sized groups. Furthermore, we find no appreciable effect of the threat of severe adverse events, whether their realization is independent across individuals, perfectly positively or n… Show more
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