This article challenges the traditional argument for the state that holds that because the market is unable to supply the rule-making, adjudicative, and enforcement services that are essential to life in society, the state must, and hence is morally justified. The author argues that the market's...

We study in the laboratory the impact of private information revelation on the selection of partners when forming individual networks. Our experiment combines a "network game" and a "public-good game". In the network game, individuals decide with whom to form a link with, while in the...

We construct a general equilibrium model of a two-country trading block where governments through tax policies attract mobile capital, and provide an imported public consumption good. At Nash equilibrium, when the public good is under-provided, (i) a country with a large GDP, has a large Nash...

Since Olson's (1965) The Logic of Collective Action, the exploitation hypothesis, in which the rich shoulders the provision burden of public goods for the poor, has held sway despite empirical exceptions. To address such exceptions, we establish two alternative exploitation hypotheses based on...