The private provision of public goods via dominant assurance contracts |
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Authors: | Tabarrok Alexander |
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Affiliation: | 1. Department of Economics, Ball State University, Muncie, Indiana, 47306-0340, U.S.A
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Abstract: | Many types of public goods can be produced privately by profit seeking entrepreneurs using a modified form of assurance contract, called a dominant assurance contract. I model the dominant assurance contract as a game and show that the pure strategy equilibrium has agents contributing to the public good as a dominant strategy. The game is also modelled under incomplete information as a Bayesian-Nash game. |
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