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We study the classical free-rider problem in public goods provision in a large economy with uncertainty about the average valuation of the public good. Individual preferences over public goods are shaped by a skill and a taste parameter. We use a mechanism design approach to solve for the...
Persistent link: https://www.econbiz.de/10010374864
According to economists, severe legal sanctions deter violations of the law. According to legal scholars, people may obey law backed by mild sanctions because of norm-activation. We experimentally investigate the effects of mild and severe legal sanctions in the provision of public goods. The...
Persistent link: https://www.econbiz.de/10011408944
Throughout human history, informal sanctions by peers were ubiquitous and played a key role in the enforcement of social norms and the provision of public goods. However, a considerable body of experimental evidence suggests that informal peer sanctions cause large collateral damage and...
Persistent link: https://www.econbiz.de/10011825357
Throughout human history, informal sanctions played a key role in the enforcement of social norms and the provision of public goods. However, a considerable body of evidence suggests that informal peer sanctions often cause large efficiency costs. This raises the question whether alternative...
Persistent link: https://www.econbiz.de/10011844819
We consider a two group contest over a group specific public good where each member of a group has a different benefit from the good. Our model can be interpreted in two ways: Each of the players has a non-linear investment cost in the contest, or alternatively, the returns to effort are...
Persistent link: https://www.econbiz.de/10003817303
We study the classical free-rider problem in public goods provision in a large economy with uncertainty about the average valuation of the public good. Individual preferences over public goods are shaped by a skill and a taste parameter. We use a mechanism design approach to solve for the...
Persistent link: https://www.econbiz.de/10012732843
This document, first created in 2007 and last updated in 2010, has now been superseded by the technical discussion in my 2010 article, Privatization, Free Riding, and Industry-Expanding Lobbying, in the International Review of Law and Economics and the plain-English discussion in my 2008...
Persistent link: https://www.econbiz.de/10013033332
According to economists, severe legal sanctions deter violations of the law. According to legal scholars, people may obey law backed by mild sanctions because of norm-activation. We experimentally investigate the effects of mild and severe legal sanctions in the provision of public goods. The...
Persistent link: https://www.econbiz.de/10013320735
There are two basic reasons why a citizen may choose to engage in political activity: She may wish to achieve particular results (“extrinsic motivations”) or she may simply enjoy engaging in the political activity itself (“intrinsic motivations”). However, most citizens’ ability to...
Persistent link: https://www.econbiz.de/10014172376
equilibrium, the hitherto dominant solution concept in contest theory, if and only if groups are symmetric. For asymmetric groups …
Persistent link: https://www.econbiz.de/10011409788