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Coalition Stability in Public Goods Provision: Testing an Optimal Allocation Rule

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  • Matthew McGinty
  • Garrett Milam
  • Alejandro Gelves

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  • Matthew McGinty & Garrett Milam & Alejandro Gelves, 2012. "Coalition Stability in Public Goods Provision: Testing an Optimal Allocation Rule," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(3), pages 327-345, July.
    • Handle: RePEc:kap:enreec:v:52:y:2012:i:3:p:327-345
    DOI: 10.1007/s10640-011-9530-6
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    References listed on IDEAS

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    2. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    3. Gary Bolton, 1998. "Bargaining and Dilemma Games: From Laboratory Data Towards Theoretical Synthesis," Experimental Economics, Springer;Economic Science Association, vol. 1(3), pages 257-281, December.
    4. Hans‐Peter Weikard, 2009. "Cartel Stability Under An Optimal Sharing Rule," Manchester School, University of Manchester, vol. 77(5), pages 575-593, September.
    5. Matthew McGinty, 2007. "International environmental agreements among asymmetric nations," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 45-62, January.
    6. Mark Isaac, R. & McCue, Kenneth F. & Plott, Charles R., 1985. "Public goods provision in an experimental environment," Journal of Public Economics, Elsevier, vol. 26(1), pages 51-74, February.
    7. Astrid Dannenberg & Andreas Lange & Bodo Sturm, 2010. "On the Formation of Coalitions to Provide Public Goods - Experimental Evidence from the Lab," NBER Working Papers 15967, National Bureau of Economic Research, Inc.
    8. Kenneth Chan & Stuart Mestelman & Robert Moir & R. Muller, 1999. "Heterogeneity and the Voluntary Provision of Public Goods," Experimental Economics, Springer;Economic Science Association, vol. 2(1), pages 5-30, August.
    9. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    10. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    11. MATTHEW McGINTY, 2011. "A Risk‐Dominant Allocation: Maximizing Coalition Stability," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(2), pages 311-325, April.
    12. Hans-Peter Weikard & Rob Dellink & Ekko Ierland, 2010. "Renegotiations in the Greenhouse," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 573-596, April.
    13. Friedman,Daniel & Sunder,Shyam, 1994. "Experimental Methods," Cambridge Books, Cambridge University Press, number 9780521456821, September.
    14. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    15. Keser, Claudia, 1996. "Voluntary contributions to a public good when partial contribution is a dominant strategy," Economics Letters, Elsevier, vol. 50(3), pages 359-366, March.
    16. Bolton, Gary E., 1997. "The rationality of splitting equally," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 365-381, March.
    17. Gary E. Bolton & Kalyan Chatterjee & Kathleen L. McGinn, 2013. "How Communication Links Influence Coalition Bargaining: A Laboratory Investigation," World Scientific Book Chapters, in: Bargaining in the Shadow of the Market Selected Papers on Bilateral and Multilateral Bargaining, chapter 6, pages 113-128, World Scientific Publishing Co. Pte. Ltd..
    18. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
    19. Leopold-Wildburger, Ulrike, 1992. "Payoff divisions on coalition formation in a three-person characteristic function experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 17(1), pages 183-193, January.
    20. Roberto Burlando & Francesco Guala, 2005. "Heterogeneous Agents in Public Goods Experiments," Experimental Economics, Springer;Economic Science Association, vol. 8(1), pages 35-54, April.
    21. Rachel T. A. Croson & Armando Gomes & Kathleen L. McGinn & Markus Nöth, 2004. "Mergers and Acquisitions: An Experimental Analysis of Synergies, Externalities and Dynamics," Review of Finance, European Finance Association, vol. 8(4), pages 481-514.
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    Cited by:

    1. Kesternich, Martin & Lange, Andreas & Sturm, Bodo, 2014. "The impact of burden sharing rules on the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 107-123.
    2. Rogna, Marco & Vogt, Carla, 2020. "Coalition formation with optimal transfers when players are heterogeneous and inequality averse," Ruhr Economic Papers 865, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Leo Wangler & Juan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2013. "The political economy of international environmental agreements: a survey," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(3), pages 387-403, September.
    4. Harold Houba & Gerard Laan & Yuyu Zeng, 2015. "International Environmental Agreements for River Sharing Problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 855-872, December.
    5. Weidong Chen & Wenjuan Zang & Wanlong Fan & Guanyi Yu, 2018. "Optimize emission reduction commitments for international environmental agreements," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(8), pages 1367-1389, December.
    6. van der Pol, Thomas & Weikard, Hans-Peter & van Ierland, Ekko, 2012. "Can altruism stabilise international climate agreements?," Ecological Economics, Elsevier, vol. 81(C), pages 112-120.
    7. Anna A. Klis, 2019. "Identity and equal treatment in negative externality agreements," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(6), pages 615-630, December.
    8. Michael Finus & Matthew McGinty, 2015. "The Anti-Paradox of Cooperation: Diversity Pays!," Department of Economics Working Papers 40/15, University of Bath, Department of Economics.
    9. Bareille, Francois & Boussard, Hugues & Thenail, Claudine, 2020. "Productive ecosystem services and collective management: Lessons from a realistic landscape model," Ecological Economics, Elsevier, vol. 169(C).
    10. Thomas Kuhn & Radomir Pestow & Anja Zenker, 2019. "Building Climate Coalitions on Preferential Free Trade Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 539-569, October.
    11. Dijkstra, Bouwe R. & Nentjes, Andries, 2020. "Pareto-Efficient Solutions for Shared Public Good Provision: Nash Bargaining versus Exchange-Matching-Lindahl," Resource and Energy Economics, Elsevier, vol. 61(C).
    12. Thomas Kuhn & Radomir Pestow & Anja Zenker, 2017. "Building Climate Coalitions on Preferential Free Trade Agreements," Chemnitz Economic Papers 011, Department of Economics, Chemnitz University of Technology, revised Jul 2017.

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    More about this item

    Keywords

    IEAs; Coalition formation; Experimental economics; Public goods; Shapley value; Nash bargaining solution; H41; C92; C72; C78; D63; D64; D74;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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