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The Private Provision of Public Goods via Dominant Assurance Contracts

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  • Tabarrok, Alexander

Abstract

Many types of public goods can be produced privately by profit-seeking entrepreneurs using a modified form of assurance contract, called a dominant assurance contract. The author models the dominant assurance contract as a game and shows that the pure strategy equilibrium has agents contributing to the public good as a dominant strategy. The game is also modeled under incomplete information as a Bayesian-Nash game. Copyright 1998 by Kluwer Academic Publishers

Suggested Citation

  • Tabarrok, Alexander, 1998. "The Private Provision of Public Goods via Dominant Assurance Contracts," Public Choice, Springer, vol. 96(3-4), pages 345-362, September.
  • Handle: RePEc:kap:pubcho:v:96:y:1998:i:3-4:p:345-62
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