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The provision of public goods in developing countries is a central challenge. This paper studies a model where each agent's effort provides heterogeneous benefits to the others, inducing a network of opportunities for favor-trading. We focus on a classical efficient benchmark – the Lindahl...
Persistent link: https://www.econbiz.de/10011709786
This paper focuses on the relationship between public action and access to public goods. It begins by developing a simple model to capture the various mechanisms that are discussed in the theoretical literature on collective action. We use the model to illustrate the special assumptions embedded...
Persistent link: https://www.econbiz.de/10014024671
We review the theory of fairness as it pertains to concretely specified problems of resource allocations. We present punctual notions designed to evaluate how well individuals, or groups, are treated in relation to one another: no-envy, egalitarian-equivalence, individual and collective lower or...
Persistent link: https://www.econbiz.de/10014025187
Based on the premise that fairness is different from equity and that it is primarily used in informal contexts we present an economic approach to fairness. Discussing the results of behavioral economics reveals the experience that people do not accept a monetary offer even if that collides with...
Persistent link: https://www.econbiz.de/10010271587
In this paper we experimentally investigate whether partial coercion can in combination with conditional cooperation increase contributions to a public good. We are especially interested in the behavior of the non-coerced populations. The main finding is that in our setting conditional...
Persistent link: https://www.econbiz.de/10010277375
We introduce reward money into the provision point mechanism with refunds. Reward money is distributed among the contributors in proportion to their contributions only when the provision point is not reached. In environments without aggregate uncertainty, the provision point is always reached in...
Persistent link: https://www.econbiz.de/10010316819
Quasilinear preferences on a public good and a numeraire good are limits of preferences where both goods are normal. The set of equilibria of the voluntary contribution (or private provision) game is easily characterized under quasilinearity by: top valuators aggregately contribute their common...
Persistent link: https://www.econbiz.de/10010317090