This paper develops a theory of the allocation of authority between two parties that produce impure public goods. We … impurity is very low as long as one party's investment is more important than the other party's. If the parties' investments …, including schools and child custody. -- impure public goods ; contractual incompleteness ; allocation of authority ; investment …

This paper develops a theory of the allocation of authority between two parties that produce impure public goods. We … impurity is very low as long as one party's investment is more important than the other party's. If the parties' investments …

how communication mitigates this free-riding problem in an investment-timing game. In our baseline investment-timing game … investor of the group bears the costs of investment while everyone in the group benefits if the project reveals high returns … communicate before choosing the investment time. We find that in groups of two players, communication increases cooperation and …