The “tragedy of the commons” describes a variety of social dilemmas where total economic surplus is produced jointly from collective behavior and where individuals can strategically manipulate their share of the surplus.  Recent research has shown that it is possible to test nonparametrically whether observed behavioral data are consistent with the canonical average return game, in which players share joint output in proportion to their inputs.  We show that these tests extend to a much broader range of games, including equal-sharing of joint output, weighted averages of equal-sharing and proportionate sharing, and the average cost game, in which players share joint costs in proportion to the service provided them.

Suggested Citation: Banzhaf, H. Spencer, and Yaqin Liu, “Non-Parametric Tests of Output- and Cost-Sharing Games,” CEnREP Working Paper No. 24-002, October 2024, https://go.ncsu.edu/cenrep.wp.24.002.