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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
-registered replication, reveals strong positive associations between group cohesion and performance assessed in weak-link coordination games …
Persistent link: https://www.econbiz.de/10013427722
Even when labour mobility is low, international integration affectslabour markets by making jobs more mobile. This runs via product market integration, which is an essential element of European integration. Increasing job mobility aects the possibilities single countries perceive in pursuing...
Persistent link: https://www.econbiz.de/10010315149
. 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
private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The …
Persistent link: https://www.econbiz.de/10010398657
We consider dynamic competition among platforms in a market with network externalities. A platform that dominated the market in the previous period becomes “focal” in the current period, in that agents play the equilibrium in which they adopt the focal platform whenever such equilibrium...
Persistent link: https://www.econbiz.de/10011451466