Public Choice

, Volume 96, Issue 3–4, pp 345–362 | Cite as

The private provision of public goods via dominant assurance contracts

  • Alexander Tabarrok
Article

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.

Keywords

Public Good Public Finance Modify Form Incomplete Information Pure Strategy 

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Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Alexander Tabarrok
    • 1
  1. 1.Department of EconomicsBall State UniversityMuncieU.S.A

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