Buchholz, Wolfgang and Falkinger, Josef and Ruebbelke, Dirk (2014) NON-GOVERNMENTAL PUBLIC NORM ENFORCEMENT IN LARGE SOCIETIES AS A TWO-STAGE GAME OF VOLUNTARY PUBLIC GOOD PROVISION. JOURNAL OF PUBLIC ECONOMIC THEORY, 16 (6). pp. 899-916. ISSN 1097-3923, 1467-9779
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In small groups, norm enforcement is achieved through mutual punishment and reward. In large societies, norms are enforced by specialists such as government officials. However, not every public cause is overseen by states, for instance those organized at the international level. This paper shows how nongovernmental norm enforcement can emerge as a decentralized equilibrium. As a first stage, individuals voluntarily contribute to a nongovernmental agency that produces an incentive system. The second stage is the provision of a public good on the basis of private contributions. The incentive system increases contributions by means of public approval or disapproval of behavior. It is shown that, even in large populations, nongovernmental norm enforcement can be supported in a noncooperative equilibrium of utility-maximizing individuals. This result is in sharp contrast to those obtained in the standard situation of voluntary provision of an intrinsic public good whichwithout altruism or related motivesis eroded by free-riding. Reliance on altruistic behavior is not required in supplying the second-order public good norm enforcement in large societies.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | EFFICIENT PRIVATE PROVISION; COOPERATION; ALTRUISM; PUNISHMENT; |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 07 Aug 2019 12:41 |
| Last Modified: | 07 Aug 2019 12:41 |
| URI: | https://pred.uni-regensburg.de/id/eprint/9182 |
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