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Voluntary Public Goods Provision, Coalition Formation, and Uncertainty

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  • Nicholas E. Burger
  • Charles D. Kolstad

Abstract

The literature on voluntary provision of public goods includes recent theoretical work on the formation of voluntary coalitions to provide public goods. Theory is ambiguous on the equilibrium coalition size and contribution rates. We examine the emergence of coalitions, their size, and how uncertainty in public goods provision affects contribution levels and coalition size. We find that contributions decrease when public good returns are uncertain but increase when individuals can form a coalition to provide the good. Contrary a core theoretical result, we find that coalition size increases when the public good benefits are higher. Uncertainty has no effect on coalition size.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15543.

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Date of creation: Nov 2009
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Handle: RePEc:nbr:nberwo:15543

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Citations

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Cited by:
  1. Hong, Fuhai & Karp, Larry, 2012. "International environmental agreements with mixed strategies and investment," CUDARE Working Paper Series 1129, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  2. Fuhai HONG & Larry KARP, 2013. "International Environmental Agreements with Endogenous or Exogenous Risk," Economic Growth centre Working Paper Series 1310, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
  3. Dannenberg, Astrid & Lange, Andreas & Sturm, Bodo, 2010. "On the formation of coalitions to provide public goods: Experimental evidence from the lab," ZEW Discussion Papers 10-037, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Charles D. Kolstad, 2011. "Public Goods Agreements with Other-Regarding Preferences," NBER Working Papers 17017, National Bureau of Economic Research, Inc.
  5. Karp, Larry & Simon, Leo, 2012. "Participation Games and international environmental agreements: a nonparametric model," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5693n1nf, Department of Agricultural & Resource Economics, UC Berkeley.
  6. Ansink, Erik & Bouma, Jetske, 2013. "Effective support for community resource management," Forest Policy and Economics, Elsevier, vol. 37(C), pages 94-103.

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