We analyze a game in which a group of agents exert costly effort over time to make progress on a project. The project is completed once the cumulative efforts reach a pre-specified threshold, at which point it generates a lump sum payoff. We characterize a budget balanced mechanism that induces...

The way people form groups when facing a coordination problem poses an economically interesting question. This paper addresses the issue of what type of clubs are formed when players must participate in a public goods game with the other players belonging to their selected club. A sequential...