Location
Parker-Reed, SSWAC
Start Date
30-4-2015 9:00 AM
End Date
30-4-2015 10:55 AM
Project Type
Poster
Description
In neoclassical economics, we assume individuals generally based their decisions on their own welfare maximizing their utility. Due to this assumption, we created a tax system in order to provide public goods so that no one will act as a free-rider. Nonetheless, this system only provides general optimal utility instead of optimal utility for each individual. Because of the set assumption that humans only seek self-interest, economists overlooked other significant factors affecting peoples decision-making processes. In this research, I applied an agent-based model in order to take in consideration other factors affecting human decision-making and propose a new system in funding public goods. I separate the factors affecting decision-making to two categories: internal behavior and external influences. The internal behaviors studied in this paper are cooperative behavior, indifferent behavior, and free-rider. The external influences are the social loafing effect, bystander effect, and conformity and imitation. Results of this study show that opportunistic behavior is the overall tended behavior. However, given the proper external influence, opportunistic behavior is the least likely tended conduct. Moreover, given the appropriate set of reward-punish system, cooperative behavior will be the overall inclined action. Note that this model will only work in a small setting like a village, town, or a small city.
Sponsoring Department
Colby College. Economics Dept.
CLAS Field of Study
Social Sciences
Event Website
http://www.colby.edu/clas
ID
1655
Included in
Rethinking How to Efficiently Fund Public Goods: An Agent-Based Modelling of a Group Funding System Accommodating Different Human Behaviors and Influences Affecting Decision-Making
Parker-Reed, SSWAC
In neoclassical economics, we assume individuals generally based their decisions on their own welfare maximizing their utility. Due to this assumption, we created a tax system in order to provide public goods so that no one will act as a free-rider. Nonetheless, this system only provides general optimal utility instead of optimal utility for each individual. Because of the set assumption that humans only seek self-interest, economists overlooked other significant factors affecting peoples decision-making processes. In this research, I applied an agent-based model in order to take in consideration other factors affecting human decision-making and propose a new system in funding public goods. I separate the factors affecting decision-making to two categories: internal behavior and external influences. The internal behaviors studied in this paper are cooperative behavior, indifferent behavior, and free-rider. The external influences are the social loafing effect, bystander effect, and conformity and imitation. Results of this study show that opportunistic behavior is the overall tended behavior. However, given the proper external influence, opportunistic behavior is the least likely tended conduct. Moreover, given the appropriate set of reward-punish system, cooperative behavior will be the overall inclined action. Note that this model will only work in a small setting like a village, town, or a small city.
https://digitalcommons.colby.edu/clas/2015/program/119