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A profit-maximizing public good supplier endogenously determines the level of the public good and simultaneously negotiates with beneficiaries of the good one by one. A pre-negotiation commitment on the production level of the public good by the supplier enhances the internalization of...
Persistent link: https://www.econbiz.de/10012903962
We examine a monopolistic supplier's decision about a pure public good when he/she must negotiate with beneficiaries of the good. In our model, while the level of the public good is decided unilaterally by the supplier, the cost share of the public good is negotiated between the supplier and...
Persistent link: https://www.econbiz.de/10011338329
outcome, a weighted, directed network describing marginal externalities is defined. We show that Pareto efficient outcomes are … motivated by negotiations. We apply the results to identify who is essential for Pareto improvements, how to efficiently … subdivide negotiations, and whom to optimally add to a team …
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Agents located from downstream to upstream along an estuary and exposed to a flooding risk have to invest in facilities like a seawall (or dike). As the benefits of that local public good increase along the estuary, upstream agents have to bargain for monetary compensation with the most...
Persistent link: https://www.econbiz.de/10010417140
We consider ultimatum bargaining over the provision of a public good. Offer-maker and responder can delegate their decisions to agents, whose actual decision rules are opaque. We show that the responder will benefit from strategic opacity, even with bilateral delegation. The incomplete...
Persistent link: https://www.econbiz.de/10013332120
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This paper analyses the role of ratification quotas in multilateral agreements over emission reduction. The higher is the quota, the lower is the level of emissions in case the agreement comes into force, but the higher is also the risk of failure. In a setting with incomplete information, two...
Persistent link: https://www.econbiz.de/10010439371
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