The Private Provision of Public Goods via Dominant Assurance Contracts¶
Tabarrok, A. (1998). The Private Provision of Public Goods via Dominant Assurance Contracts. Public Choice, 96(3–4), 3-4.
Cited by¶
2 citations across 2 artifacts.
Each citation links to the sentence it supports in the citing article.
Mechanisms¶
- Assurance Contract
- Optional dominant variant. The organizer can promise pledgers a small bonus if the threshold fails, making it individually rational to pledge regardless of what others do.
This sourceDefines a failure-contingent payment to pledgers and proves that accepting the contract can be a dominant strategy regardless of others' actions.
- Optional dominant variant. The organizer can promise pledgers a small bonus if the threshold fails, making it individually rational to pledge regardless of what others do.
- Collective Threshold Pledge
- The discipline is to pin the threshold to genuine critical mass, run the count and escrow through a trusted party, and hand off to a durable contribution arrangement the moment the gate is cleared.
This sourceConditions provision of a public good on reaching a contribution or participation threshold sufficient to produce it.
- The discipline is to pin the threshold to genuine critical mass, run the count and escrow through a trusted party, and hand off to a durable contribution arrangement the moment the gate is cleared.
Verification¶
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