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Non-Governmental Public Norm Enforcement in Large Societies as a Two-Stage Game of Voluntary Public Good Provision

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  • Wolfgang Buchholz
  • Josef Falkinger
  • Dirk Rübbelke

Abstract

In small groups, norm enforcement is achieved through mutual punishment and reward. In large societies, norms are enforced by specialists such as government officials. However, not every public cause is overseen by states, for instance those organized at the international level. This paper shows how non-governmental norm enforcement can emerge as a decentralized equilibrium. As a first stage, individuals voluntarily contribute to a non-governmental agency that produces an incentive system. The second stage is the provision of a public good on the basis of private contributions. The incentive system punishes and rewards deviations from the norm for contributions by means of public approval or disapproval of behavior. It is shown that, even in large populations, nongovernmental norm enforcement can be supported in a non-cooperative equilibrium of utility-maximizing individuals.

Suggested Citation

  • Wolfgang Buchholz & Josef Falkinger & Dirk Rübbelke, 2011. "Non-Governmental Public Norm Enforcement in Large Societies as a Two-Stage Game of Voluntary Public Good Provision," ANU Working Papers in Economics and Econometrics 2011-566, Australian National University, College of Business and Economics, School of Economics.
  • Handle: RePEc:acb:cbeeco:2011-566
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    Cited by:

    1. Partha Dasgupta & Dale Southerton & Alistair Ulph & David Ulph, 2014. "Consumer Behaviour in a Social Context: Implications for Environmental Policy," Discussion Paper Series, School of Economics and Finance 201407, School of Economics and Finance, University of St Andrews.
    2. Reif, Christiane & Rübbelke, Dirk & Löschel, Andreas, 2014. "Improving voluntary public good provision by a non-governmental, endogenous matching mechanism: Experimental evidence," ZEW Discussion Papers 14-075, ZEW - Leibniz Centre for European Economic Research.
    3. Ulph, Alistair & Ulph, David, 2014. "Consumption Decisions When People Value Conformity," SIRE Discussion Papers 2015-16, Scottish Institute for Research in Economics (SIRE).
    4. Alistair Ulph & David Ulph, 2014. "Consumption Decisions When People Value Conformity," Discussion Paper Series, School of Economics and Finance 201414, School of Economics and Finance, University of St Andrews.
    5. 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.
    6. Christiane Reif & Dirk Rübbelke & Andreas Löschel, 2017. "Improving Voluntary Public Good Provision Through a Non-governmental, Endogenous Matching Mechanism: Experimental Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 559-589, July.
    7. Dasgupta, Partha & Southerton, Dale & Ulph, Alistair & Ulph, David, 2014. "Consumer Behaviour in a Social Context: Implications for Environmental Policy," SIRE Discussion Papers 2015-10, Scottish Institute for Research in Economics (SIRE).
    8. Molina, Chai & Akcay, Erol & Dieckmann, Ulf & Levin, Simon & Rovenskaya, Elena A., 2018. "Combating climate change with matching-commitment agreements," SocArXiv 7yc3g, Center for Open Science.
    9. Martin Kesternich & Christiane Reif & Dirk Rübbelke, 2017. "Recent Trends in Behavioral Environmental Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(3), pages 403-411, July.
    10. Grafton, R. Quentin & Kompas, Tom & Long, Ngo Van, 2017. "A brave new world? Kantian–Nashian interaction and the dynamics of global climate change mitigation," European Economic Review, Elsevier, vol. 99(C), pages 31-42.
    11. Partha Dasgupta & Dale Southerton & Alistair Ulph & David Ulph, 2016. "Consumer Behaviour with Environmental and Social Externalities: Implications for Analysis and Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 191-226, September.

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    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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