Kosfeld, Michael; Okada, Akira; Riedl, Arno - In: American Economic Review 99 (2009) 4, pp. 1335-55
Sanctioning institutions are of utmost importance for overcoming free-riding tendencies and enforcing outcomes that maximize group welfare in social dilemma situations. We investigate, theoretically and experimentally, the endogenous formation of institutions in public goods provision. Our...