This paper develops a theory of the allocation of authority between two parties that produce impure public goods. We … show that the optimal allocation depends on technological factors, the parties' valuations of the goods produced, and the … degree of impurity of these goods. When the degree of impurity is large, control rights should be given to the main investor …

This paper develops a theory of the allocation of authority between two parties that produce impure public goods. We … show that the optimal allocation depends on technological factors, the parties' valuations of the goods produced, and the … degree of impurity of these goods. When the degree of impurity is large, control rights should be given to the main investor …

economy and to cure the underprovision problem associated with private provision of public goods. The desired Pareto optimal … results by a simple numerical example. -- public goods ; matching ; Pareto optimality …

Social norms can help to foster cooperation and to overcome the free-rider problem in private provision of public goods … subjects achieve to implement a norm-enforcement mechanism at their own expense by applying the theory of non-governmental norm …-enforcement by Buchholz et al. (2014) in a laboratory experiment. Based on their theory without central authority and endogenously …

. Our results are consistent with the theory of strategic ambiguity of Bernheim and Whinston (1998) and can be rationalized …