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.
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Tabarrok, A. The private provision of public goods via dominant assurance contracts. Public Choice 96, 345–362 (1998). https://doi.org/10.1023/A:1004957109535
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DOI: https://doi.org/10.1023/A:1004957109535