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Commitment and matching contributions to public goods

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  • Boadway, Robin
  • Song, Zhen
  • Tremblay, Jean-Francois

Abstract

This paper studies multi-stage processes of non-cooperative voluntary provision of public goods. In the first stage, one or more players announce contributions that may be conditional on the subsequent contributions of others. In later stages, players choose their own contributions and fulfill any commitments made in the first stage. Equilibrium contributions are characterized under different assumptions about the commitment ability of players, the number of public goods and whether players commit to matching rates or to discrete quantities. We focus on contribution mechanisms thatcan emerge and be sustainable without a central authority, and that therefore may be particularly relevant for theprovision of international public goods. Efficient levels of public goods can be achieved under some circumstances.
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  • Boadway, Robin & Song, Zhen & Tremblay, Jean-Francois, 2007. "Commitment and matching contributions to public goods," Journal of Public Economics, Elsevier, vol. 91(9), pages 1664-1683, September.
    • Handle: RePEc:eee:pubeco:v:91:y:2007:i:9:p:1664-1683
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    Cited by:

    1. Andreas Löschel & Dirk Rübbelke, 2014. "On the Voluntary Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 81(322), pages 195-204, April.
    2. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2013. "Non-cooperative pollution control in an inter-jurisdictional setting," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 783-796.
    3. Guttman, Joel M., 2013. "On the evolution of conditional cooperation," European Journal of Political Economy, Elsevier, vol. 30(C), pages 15-34.
    4. Dooseok Jang & Amrish Patel & Martin Dufwenberg, 2016. "Co-Financing Agreements and Reciprocity: When 'No Deal' is a Good Deal," CESifo Working Paper Series 6213, CESifo.
    5. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2011. "Matching as a Cure for Underprovision of Voluntary Public Good Supply: Analysis and an Example," CESifo Working Paper Series 3374, CESifo.
    6. Braid, Ralph M., 2010. "Provision of a pure local public good in a spatial model with many jurisdictions," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 890-897, December.
    7. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2011. "The efficiency of voluntary pollution abatement when countries can commit," European Journal of Political Economy, Elsevier, vol. 27(2), pages 352-368, June.
    8. Weifeng Liu, 2014. "Participation constraints of matching mechanisms," CAMA Working Papers 2014-63, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    9. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2020. "Matching in the Kolm triangle: interiority and participation constraints of matching equilibria," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 47(5), pages 1039-1050, April.
    10. Wolfgang Buchholz & Alexander Haupt & Wolfgang Peters, 2013. "International Environmental Agreements, Fiscal Federalism, and Constitutional Design," Review of International Economics, Wiley Blackwell, vol. 21(4), pages 705-718, September.
    11. Buchholz, Wolfgang & Cornes, Richard & Peters, Wolfgang & Rübbelke, Dirk, 2015. "Pareto improvement through unilateral matching of public good contributions: The role of commitment," Economics Letters, Elsevier, vol. 132(C), pages 9-12.
    12. Wolfgang Buchholz & Richard Cornes & Dirk T. G. Rübbelke, 2009. "Existence and Warr Neutrality for Matching Equilibria in a Public Good Economy: An Aggregative Game Approach," CESifo Working Paper Series 2884, CESifo.
    13. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2014. "Potentially Harmful International Cooperation on Global Public Good Provision," Economica, London School of Economics and Political Science, vol. 81(322), pages 205-223, April.
    14. A. Yudanov & O. Pyrkina & E. Bekker., 2016. "On the limits of unsolvability of the "free rider problem"," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
    15. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2012. "Matching as a cure for underprovision of voluntary public good supply," Economics Letters, Elsevier, vol. 117(3), pages 727-729.
    16. Jang, Dooseok & Patel, Amrish & Dufwenberg, Martin, 2018. "Agreements with reciprocity: Co-financing and MOUs," Games and Economic Behavior, Elsevier, vol. 111(C), pages 85-99.
    17. Robert Hahn & Robert Ritz, 2014. "Optimal Altruism in Public Good Provision," Cambridge Working Papers in Economics 1403, Faculty of Economics, University of Cambridge.
    18. Kotaro Kawamata & Masahide Horita, 2014. "Applying Matching Strategies in Climate Change Negotiations," Group Decision and Negotiation, Springer, vol. 23(3), pages 401-419, May.
    19. Rübbelke, Dirk T.G., 2011. "International support of climate change policies in developing countries: Strategic, moral and fairness aspects," Ecological Economics, Elsevier, vol. 70(8), pages 1470-1480, June.
    20. Miranda del Corral, 2015. "Why do people keep their promises? An overview of strategic commitment," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, March.
    21. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2011. "Interior matching equilibria in a public good economy: An aggregative game approach," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 639-645, August.
    22. Wolfgang Buchholz & Wolfgang Peters & Aneta Ufert, 2014. "Spielräume für uni- und multilateralen Klimaschutz," Discussion Paper Series RECAP15 15, RECAP15, European University Viadrina, Frankfurt (Oder).
    23. Gong, Ning & Grundy, Bruce D., 2014. "The design of charitable fund-raising schemes: Matching grants or seed money," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 147-165.
    24. Saboury, Piruz & Krasteva, Silvana & Palma, Marco A., 2022. "The effect of seed money and matching gifts in fundraising: A lab experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 425-453.
    25. Martin Altemeyer-Bartscher & Anil Markandya & Dirk T.G. Rübbelke, 2011. "The Private Provision of International Impure Public Goods: the Case of Climate Policy," Working Papers 2011-09, BC3.

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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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