EconPapers    
Economics at your fingertips  
 

The problem of maintaining compliance within stable coalitions: experimental evidence

David McEvoy (), James Murphy (), John Spraggon () and John Stranlund ()

Oxford Economic Papers, 2011, vol. 63, issue 3, 475-498

Abstract: This study examines the performance of stable cooperative coalitions that form to provide a public good when coalition members have the opportunity to violate their commitments. A stable coalition is one in which no member wishes to leave and no non-member wishes to join. To counteract the incentive to violate their commitments, coalition members fund a third-party enforcer. This leads to the theoretical conclusion that stable coalitions are larger, and provide more of a public good, when their members are responsible for financing enforcement. However, our experiments reveal that member-financed enforcement of compliance reduces the provision of the public good. The decrease is attributed to an increase in the participation threshold for a stable coalition to form and to significant levels of noncompliance. Provision of the public good increases significantly when we abandon the strict stability conditions and require all subjects to join a coalition for it to form. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/oep/gpq023 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The problem of maintaining compliance within stable coalitions: experimental evidence (2010) Downloads
Working Paper: The Problem of Maintaining Compliance within Stable Coalitions: Experimental Evidence (2008) Downloads
Working Paper: The Problem of Maintaining Compliance within Stable Coalitions: Experimental Evidence (2008) Downloads
Working Paper: The Problem of Maintaining Compliance within Stable Coalitions: Experimental Evidence (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:63:y:2011:i:3:p:475-498

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ( this e-mail address is bad, please contact ) and Christopher F. Baum ().

 
Page updated 2021-04-03
Handle: RePEc:oup:oxecpp:v:63:y:2011:i:3:p:475-498