This paper studies the enforcement abilities of authorities with a limited commitment to punishing violators. Commitment of resources su±cient to punish only one agent is needed to enforce high compliance of an arbitrary number of agents. Though existence of other, non-compliance equilibria is generally inevitable, there exist punishment rules suitable for a limited authority to assure that compliance prevails in the long run under stochastic evolution.
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Paper provided by Edinburgh School of Economics, University of Edinburgh in its series ESE Discussion Papers with number
149.
Find related papers by JEL classification: C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games D64 - Microeconomics - - Welfare Economics - - - Altruism H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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