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We develop a two-region model where the decentralized provision of spillover goods can be financed by means of taxes or user fees. In order to enforce the fees regions have to invest in exclusion. We show that a decentralized solution tends to be inefficient. There will be over-investment in...
Persistent link: https://www.econbiz.de/10010315956
We report experimental evidence on the voluntary provision of public goods under threshold uncertainty. By explicitly comparing two prominent technologies, summation and weakest link, we show that uncertainty is particularly detrimental to threshold attainment under weakest link, where low...
Persistent link: https://www.econbiz.de/10012799757
Many experts claim that the incidence of suicide attacks is driven by religious cleavages. To test this hypothesis, we investigate whether the total number of suicide attacks per violent conflict or the annual number of suicide attacks per country is associated with simmering religious...
Persistent link: https://www.econbiz.de/10010480885
We examine the formation of multilateral, hub-and-spoke and bilateral international R&D strategic alliances (overlapping climate clubs) to reduce CO2 emissions. R&D provision in clubs produces two types of positive externalities: a global public good (i.e., reduction of CO2 emissions) and...
Persistent link: https://www.econbiz.de/10012892264
. Whereas agents have a coordination motive to take the same position, at the social level effective market coordination per se …
Persistent link: https://www.econbiz.de/10010261100
Global Games approach we can solve this coordination problem and eliminate the problem of multiple equilibria. We show how …
Persistent link: https://www.econbiz.de/10010261419
We examine the Nash equilibria of a game where two national governments set patent breadth strategically. Broader patents make R&D more attractive, but the effect on static efficiency is nonmonotonic. In a North.South model, where only the North can innovate, harmonization of patent breadth...
Persistent link: https://www.econbiz.de/10011657132
. Groups play a repeated coordination game in which they can agree on a payoff-dominant or a payoff-dominated but ideologically …
Persistent link: https://www.econbiz.de/10012425648
coordination. In a fixed interaction treatment, a vast majority of subjects quickly coordinates on the inefficient outcome. In a …
Persistent link: https://www.econbiz.de/10012582075
coordinate their choices. Once participants had established a coordination norm, an intervention created pressure to tip to a new …
Persistent link: https://www.econbiz.de/10013266702