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Self-enforcing norms and efficient non-cooperative collective action in the provision of public goods

  • Kai Konrad

    ()

  • Wolfgang Leininger

    ()

We show how norms can solve the distributional conflict inside a group in an anarchic environment and yield efficient coordination of collective action in a conflict with an external competitor. The equilibrium of the fully non-cooperative game with finite horizon has two interesting features. First, one of the players assumes a central role that resembles the role of the 'big-man' in some primitive stateless societies. Second, the group members' contributions to collective output and the payments from the big-man to these members seemingly look like reciprocal behavior, even though they are driven by narrowly selfish preferences. © 2010 The Author(s).

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File URL: http://hdl.handle.net/10.1007/s11127-010-9600-2
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Article provided by Springer in its journal Public Choice.

Volume (Year): 146 (2011)
Issue (Month): 3 (March)
Pages: 501-520

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Handle: RePEc:kap:pubcho:v:146:y:2011:i:3:p:501-520
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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