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Collective Choice in Dynamic Public Good Provision

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  • T. Renee Bowen
  • George Georgiadis
  • Nicolas S. Lambert

Abstract

Two heterogeneous agents contribute over time to a joint project, and collectively decide its scope. A larger scope requires greater cumulative effort and delivers higher benefits upon completion. We show that the efficient agent prefers a smaller scope, and preferences are time-inconsistent: as the project progresses, the efficient (inefficient) agent’s preferred scope shrinks (expands). We characterize the equilibrium outcomes under dictatorship and unanimity, with and without commitment. We find that an agent’s degree of efficiency is a key determinant of control over project scopes. From a welfare perspective, it may be desirable to allocate decision rights to the inefficient agent.

Suggested Citation

  • T. Renee Bowen & George Georgiadis & Nicolas S. Lambert, 2016. "Collective Choice in Dynamic Public Good Provision," NBER Working Papers 22772, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22772
    Note: IO ITI PE POL PR
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    References listed on IDEAS

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    Cited by:

    1. Colombo, Luca & Labrecciosa, Paola & Long, Ngo Van, 2019. "A Dynamic Analysis of Climate Change Mitigation with Endogenous Number of Contributors: Loose vs Tight Cooperation," Discussion paper series HIAS-E-92, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    2. Colombo, Luca & Labrecciosa, Paola & Van Long, Ngo, 2022. "A dynamic analysis of international environmental agreements under partial cooperation," European Economic Review, Elsevier, vol. 143(C).
    3. Huseyin Yildirim, 2023. "Who fares better in teamwork?," RAND Journal of Economics, RAND Corporation, vol. 54(2), pages 299-324, June.
    4. Ozerturk, Saltuk & Yildirim, Huseyin, 2021. "Credit attribution and collaborative work," Journal of Economic Theory, Elsevier, vol. 195(C).
    5. Sebastien Rouillon, 2018. "Noncooperative Dynamic Contribution to a Public Project," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-24, September.
    6. Georgiadis, George, 2017. "Deadlines and infrequent monitoring in the dynamic provision of public goods," Journal of Public Economics, Elsevier, vol. 152(C), pages 1-12.
    7. Saltuk Özerturk & Huseyin Yildirim, 2019. "Credit Attribution and Collaborative Work," Departmental Working Papers 1907, Southern Methodist University, Department of Economics.

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    More about this item

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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