IDEAS home Printed from https://ideas.repec.org/a/bla/jpbect/v20y2018i3p325-355.html
   My bibliography  Save this article

Global public goods and coalition formation under matching mechanisms

Author

Listed:
  • Weifeng Liu

Abstract

This paper links coalition theory with matching mechanisms in the presence of global public goods among heterogeneous players. This matching coalition may achieve Pareto‐improving outcomes while avoiding side payments. The paper characterizes conditions of coalition profitability and stability at both interior and corner equilibria. It is generally much harder to satisfy stability conditions than profitability conditions. A matching coalition is more profitable but less stable with a larger matching rate. Empirically there is no stable coalition but this can be overcome by introducing reputation mechanisms. There always exists a stable grand matching coalition if players value their reputation. The matching coalition faces a trade‐off between matching depth and breadth.

Suggested Citation

  • Weifeng Liu, 2018. "Global public goods and coalition formation under matching mechanisms," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(3), pages 325-355, June.
    • Handle: RePEc:bla:jpbect:v:20:y:2018:i:3:p:325-355
    DOI: 10.1111/jpet.12294
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jpet.12294
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jpet.12294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wolfgang Buchholz & Keisuke Hattori, 2021. "A Paradox of Coalition Building in Public Good Provision," CESifo Working Paper Series 9354, CESifo.
    2. Alejandro Caparrós & Michael Finus, 2020. "Public good agreements under the weakest‐link technology," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 555-582, June.
    3. Greg Leo & Yevgeniy Vorobeychik & Myrna Wooders, 2023. "Subgame Perfect Coalition Formation," Dynamic Games and Applications, Springer, vol. 13(2), pages 510-524, June.
    4. Funashima, Yoshito, 2022. "Efficiency and group size in the voluntary provision of public goods with threshold preference," Research in Economics, Elsevier, vol. 76(3), pages 237-251.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jpbect:v:20:y:2018:i:3:p:325-355. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/apettea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.