Self-enforcing norms and efficient non-cooperative collective action in the provision of public goods

Kai Konrad and Wolfgang Leininger

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: We show how norms can solve the distributional conflict inside a group in an anarchic environment and yield efficient coordination of collective action in a conflict with an external competitor. The equilibrium of the fully non-cooperative game with finite horizon has two interesting features. First, one of the players assumes a central role that resembles the role of the 'big-man' in some primitive stateless societies. Second, the group members' contributions to collective output and the payments from the big-man to these members seemingly look like reciprocal behavior, even though they are driven by narrowly selfish preferences. © 2010 The Author(s).

JEL-codes: D72 D74 H11 H41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (10)

Published in Public Choice 3 146(2011): pp. 501-520

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Journal Article: Self-enforcing norms and efficient non-cooperative collective action in the provision of public goods (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:22075

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