3 ms·
Reminds me of a concept called dominant assurance contracts. https://en.wikipedia.org/wiki/Assurance_contract#Dominant_assurance_contracts https://en.wikipedia
by alentist 6y ago
Reminds me of a concept called dominant assurance contracts.
https://en.wikipedia.org/wiki/Assurance_contract#Dominant_assurance_contracts https://en.wikipedia.org/wiki/Assurance_contract#Dominant_as...
https://link.springer.com/article/10.1023%2FA%3A1004957109535 https://link.springer.com/article/10.1023%2FA%3A100495710953...
> 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.