Arbel, Yuval; Bar-El, Ronen; Schwarz, Mordechai E.; … - Institute for the Study of Labor (IZA) - 2014
We study the dynamics of the private provision of a public good that requires both capacity buildup and ongoing operating costs. We show that setting a time limit for the collection of contributions dedicated to capacity buildup minimizes the utility loss at the Nash equilibrium. We test the...