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The achievements of a group frequently depend on the efforts of just a few members but represent a public good benefit to all members. This paper investigates such a situation: the private provision of a public good whose level is determined as the maximum effort made by a group member. Members'...
Persistent link: https://www.econbiz.de/10014039473
Excessively tight and biased policy choices of rule makers can be explained as outcomes of competition among rule makers with over-lapping competencies and diverging perceptions about the optimal framework. Rule makers who have extreme rather than moderate preferences are more likely to take...
Persistent link: https://www.econbiz.de/10014093695
We study the sorting of contestants across Tullock contests, and the allocation of a prize budget across these contests. Our benchmark result is that total effort is maximized by a unique grand contest and contestant exclusions decrease total effort. We consider two extensions of our benchmark...
Persistent link: https://www.econbiz.de/10013296576
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We explore public randomization (Harris et al., 1995) in group contests and introduce group public randomization equilibria (GPRE). We consider group all-pay auctions with weakest-link and best-shot impact functions. While best-shot contests without public randomization are known for their...
Persistent link: https://www.econbiz.de/10014353635
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Persistent link: https://www.econbiz.de/10014634476
We address the coordination problem of individuals deciding to join an association that provides a public good and selective benefits to its members, when ability of the association to fulfill its purposes depends on membership size. In a global game formulation, we show that a unique...
Persistent link: https://www.econbiz.de/10005128071
We introduce threshold uncertainty, a la Nitzan and Romano (1990), into a private-values model of voluntary provision of a discrete public good. Players are allowed to make any level of contribution toward funding the good, which is provided only if the cost threshold is reached. Otherwise,...
Persistent link: https://www.econbiz.de/10005012453
We analyze a symmetric Bayesian game in which two players individually contribute to fund a discrete public good; contributions are refunded if they do not meet a threshold set by the seller of the good. We provide a general characterization of symmetric equilibrium strategies that are continuous...
Persistent link: https://www.econbiz.de/10005012459