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Commitment and Matching Contributions to Public Goods

Author

Listed:
  • Robin Boadway

    () (Queen's University)

  • Zhen Song

    () (Queen's University)

  • Jean-Francois Tremblay

    () (University of Ottawa)

Abstract

This paper studies multi-stage processes of non-cooperative voluntary provision of public goods. In the first stage, one or more players announce contributions that may be conditional on the subsequent contributions of others. In later stages, players choose their own contributions and fulfill any commitments made in the first stage. Equilibrium contributions are characterized under different assumptions about the commitment ability of players, the number of public goods and whether players commit to matching rates or to discrete quantities. We focus on contribution mechanisms that can emerge and be sustainable without a central authority, and that therefore may be particularly relevant for the provision of international public goods. Efficient levels of public goods can be achieved under some circumstances.

Suggested Citation

  • Robin Boadway & Zhen Song & Jean-Francois Tremblay, 2006. "Commitment and Matching Contributions to Public Goods," Working Papers 1067, Queen's University, Department of Economics.
  • Handle: RePEc:qed:wpaper:1067
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2014. "Potentially Harmful International Cooperation on Global Public Good Provision," Economica, London School of Economics and Political Science, vol. 81(322), pages 205-223, April.
    2. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2011. "Interior matching equilibria in a public good economy: An aggregative game approach," Journal of Public Economics, Elsevier, vol. 95(7), pages 639-645.
    3. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2012. "Matching as a cure for underprovision of voluntary public good supply," Economics Letters, Elsevier, vol. 117(3), pages 727-729.
    4. Rübbelke, Dirk T.G., 2011. "International support of climate change policies in developing countries: Strategic, moral and fairness aspects," Ecological Economics, Elsevier, vol. 70(8), pages 1470-1480, June.
    5. Gong, Ning & Grundy, Bruce D., 2014. "The design of charitable fund-raising schemes: Matching grants or seed money," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 147-165.
    6. 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.
    7. Wolfgang Buchholz & Alexander Haupt & Wolfgang Peters, 2013. "International Environmental Agreements, Fiscal Federalism, and Constitutional Design," Review of International Economics, Wiley Blackwell, vol. 21(4), pages 705-718, September.
    8. Buchholz, Wolfgang & Cornes, Richard & Peters, Wolfgang & Rübbelke, Dirk, 2015. "Pareto improvement through unilateral matching of public good contributions: The role of commitment," Economics Letters, Elsevier, vol. 132(C), pages 9-12.
    9. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2013. "Non-cooperative pollution control in an inter-jurisdictional setting," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 783-796.
    10. Robert Hahn & Robert Ritz, 2014. "Optimal Altruism in Public Good Provision," Cambridge Working Papers in Economics 1403, Faculty of Economics, University of Cambridge.
    11. Guttman, Joel M., 2013. "On the evolution of conditional cooperation," European Journal of Political Economy, Elsevier, vol. 30(C), pages 15-34.
    12. Wolfgang Buchholz & Richard Cornes & Dirk Rübbelke, 2011. "Matching as a Cure for Underprovision of Voluntary Public Good Supply: Analysis and an Example," ANU Working Papers in Economics and Econometrics 2011-541, Australian National University, College of Business and Economics, School of Economics.
    13. repec:spr:grdene:v:23:y:2014:i:3:d:10.1007_s10726-013-9354-6 is not listed on IDEAS
    14. Dooseok Jang & Amrish Patel & Martin Dufwenberg, 2016. "Co-financing agreements and reciprocity: When 'no deal' is a good deal," University of East Anglia School of Economics Working Paper Series 2016-12, School of Economics, University of East Anglia, Norwich, UK..
    15. Miranda del Corral, 2015. "Why do people keep their promises? An overview of strategic commitment," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, March.
    16. Wolfgang Buchholz & Richard Cornes & Dirk T. G. Rübbelke, 2009. "Existence and Warr Neutrality for Matching Equilibria in a Public Good Economy: An Aggregative Game Approach," CESifo Working Paper Series 2884, CESifo Group Munich.
    17. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2011. "The efficiency of voluntary pollution abatement when countries can commit," European Journal of Political Economy, Elsevier, vol. 27(2), pages 352-368, June.
    18. Braid, Ralph M., 2010. "Provision of a pure local public good in a spatial model with many jurisdictions," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 890-897, December.
    19. Martin Altemeyer-Bartscher & Anil Markandya & Dirk T.G. Rübbelke, 2011. "The Private Provision of International Impure Public Goods: the Case of Climate Policy," Working Papers 2011-09, BC3.
    20. Wolfgang Buchholz & Wolfgang Peters & Aneta Ufert, 2014. "Spielräume für uni- und multilateralen Klimaschutz," Discussion Paper Series RECAP15 15, RECAP15, European University Viadrina, Frankfurt (Oder).
    21. Weifeng Liu, 2014. "Pareto Improvements under Matching Mechanisms in a Public Good Economy," CAMA Working Papers 2014-63, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

    More about this item

    Keywords

    voluntary provision; matching contributions; commitment; multiple public goods;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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