When groups contribute to a public good: The importance of institutional framework for making collective decisions

In this paper I discuss how the institutional framework for making collective decisions influences the outcome of a game where groups contribute to a public good. Representative democracy invites each group to act strategically in the election of representatives. I show that this strategic effect reinforces “the tragedy of the common.” The society — all groups taken together — has therefore incentives to restrict groups from making collective decisions through a system of representation.