On the Formation of Coalitions to Provide Public Goods – Experimental Evidence from the Lab

摘要: The provision of public goods often relies on voluntary contributions and cooperation. While most the experimental literature focuses individual contributions, many real-world problems involve formation institutions among subgroups (coalitions) players. International agreements serve as one example. This paper experimentally tests theory coalitions in different compares those to a contribution mechanism. experiment confirms rather pessimistic conclusions from theory: only few players form coalition when institution prescribes full internalization mutual benefits members. Contrary theory, that try reduce free-riding incentives by requiring less their members, do not attract additional Substantial efficiency gains occur, however, both along extensive intensive margin members can each suggest minimum level with smallest common denominator being binding. thereby shows acceptance depends how terms are reached.