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Pure Redistribution and the Provision of Public Goods

Author

Listed:
  • Rupert Sausgruber

    (Department of Public Economics, University of Innsbruck)

  • Jean-Robert Tyran

    (Department of Economics, University of Copenhagen)

Abstract

We study pure redistribution as a device to increase cooperation and efficiency in the provision of public goods. Experimental subjects play a two-stage game. The first stage is the standard linear public goods game. In the second stage, subjects can redistribute payoffs among other subjects in their group. We find that cooperation and efficiency increases substantially with this redistribution scheme, and that the redistribution option is popular. Our results provide an intuitive explanation for why an imposed redistribution rule, as proposed by Falkinger (1996), is capable of sustaining cooperation in the provision of public goods.

Suggested Citation

  • Rupert Sausgruber & Jean-Robert Tyran, 2006. "Pure Redistribution and the Provision of Public Goods," Discussion Papers 06-24, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:0624
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    File URL: http://www.econ.ku.dk/english/research/publications/wp/2006/0624.pdf/
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    1. is not listed on IDEAS
    2. Thomas Markussen & Ernesto Reuben & Jean‐Robert Tyran, 2014. "Competition, Cooperation and Collective Choice," Economic Journal, Royal Economic Society, vol. 124(574), pages 163-195, February.
    3. Reuben, Ernesto & Tyran, Jean-Robert, 2010. "Everyone is a winner: Promoting cooperation through all-can-win intergroup competition," European Journal of Political Economy, Elsevier, vol. 26(1), pages 25-35, March.
    4. Stringhi, Alessandro & Gil-Gallen, Sara & Albertazzi, Andrea, 2025. "The Enemy of My Enemy," FEEM Working Papers 349168, Fondazione Eni Enrico Mattei (FEEM).
    5. Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2010. "Voting on Thresholds for Public Goods: Experimental Evidence," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(1), pages 34-64, March.
    6. Chiara Casoli & Riccardo Lucchetti, 2025. "A rotated Dynamic Factor Model for the yield curve: squeezing out information when it matters," Working Papers 2026.03, Fondazione Eni Enrico Mattei.
    7. Fatas, Enrique & Nosenzo, Daniele & Sefton, Martin & Zizzo, Daniel John, 2021. "A self-funding reward mechanism for tax compliance," Journal of Economic Psychology, Elsevier, vol. 86(C).
    8. repec:osf:socarx:xf43q_v1 is not listed on IDEAS
    9. Page, Talbot & Putterman, Louis & Garcia, Bruno, 2013. "Voluntary contributions with redistribution: The effect of costly sanctions when one person's punishment is another's reward," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 34-48.
    10. Albertazzi, Andrea & Stringhi, Alessandro & Gil-Gallen, Sara, 2025. "The Enemy of My Enemy: How Competition Mitigates Social Dilemmas," SocArXiv xf43q, Center for Open Science.
    11. Talbot Page & Louis Putterman & Bruno Garcia, 2008. "Getting Punnishment Right: Do Costly Monitoring or Redustributive Punishment Help?," Working Papers 2008-1, Brown University, Department of Economics.

    More about this item

    Keywords

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    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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