The role of aggregation technologies in the provision of supranational public goods: A reconsideration of NATO’s strategies
Voluntary contributions to the provision of public goods do not necessarily follow a summation aggregation technology. The article investigates the alternative best-shot aggregation process and provides the corresponding Nash equilibrium conditions for allies in the context of joint products in a supranational alliance. The application deals with NATO over the period 1955-2006 and evidences new breakpoints and aggregation technology assessments, which leads to a reconsideration of the alliance's strategy. We find that a best-shot technology prevails from 1955 to 1970. Afterwards, summation of contributions becomes the aggregation technology of the alliance, with increased strategic behavior after 1990.
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Volume (Year): 6 (2011)
Issue (Month): 1 (March)
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