Kosfeld, Michael; Okada, Akira; Riedl, Arno - Institute for the Study of Labor (IZA) - 2006
Centralized sanctioning institutions are of utmost importance for overcoming free-riding tendencies and enforcing … outcomes that maximize group welfare in social dilemma situations. However, little is known about how such institutions come … institutions in a public goods game. Our theoretical analysis shows that players may form sanctioning institutions in equilibrium …