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Public good agreements under the weakest-link technology

Author

Listed:
  • Alejandro Caparrós
  • Michael Finus
Abstract
We analyze the formation of public good agreements under the weakest-link technology. Coordination of and cooperation on migration policies, money laundering measures and biodiversity conservation e§orts are prime examples of this technology. Whereas for symmetric players, policy coordination is not necessary, for asymmetric players cooperation matters but fails, in the absence of transfers. In contrast, with an optimal transfer scheme, asymmetry may not be an obstacle but an asset for cooperation, with even the grand coalition being stable. We characterize various types and degrees of asymmetry and relate them to the stability of agreements and associate gains from cooperation.

Suggested Citation

  • Alejandro Caparrós & Michael Finus, 2016. "Public good agreements under the weakest-link technology," Working Papers 1602, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    • Handle: RePEc:ipp:wpaper:1602
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    Citations

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    Cited by:

    1. Alejandro Caparrós & Michael Finus, 2020. "Public good agreements under the weakest‐link technology," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 555-582, June.
    2. Fredrik Carlsson & Claes Ek & Andreas Lange, 2021. "All It Takes Is One: The Effect of Weakest-Link and Summation Aggregation on Public Good Provision under Threshold Uncertainty," CESifo Working Paper Series 9457, CESifo.
    3. Robert J. R. Elliott & Ingmar Schumacher & Cees Withagen, 2020. "Suggestions for a Covid-19 Post-Pandemic Research Agenda in Environmental Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 1187-1213, August.
    4. Alejandro Caparrós & Michael Finus, 2020. "The Corona-Pandemic: A Game-Theoretic Perspective on Regional and Global Governance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 913-927, August.
    5. Alejandro Caparrós & Esther Blanco & Philipp Buchenauer & Michael Finus, 2020. "Team Formation in Coordination Games with Fixed Neighborhoods," Working Papers 2004, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    6. Fredrik Carlsson & Claes Ek & Andreas Lange, 2024. "One bad apple spoils the barrel? Public good provision under threshold uncertainty," Experimental Economics, Springer;Economic Science Association, vol. 27(3), pages 664-686, July.
    7. Stefano Barbieri & Iryna Topolyan, 2021. "Private‐information group contests with complementarities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(5), pages 772-800, October.
    8. Gilbert Kollenbach, 2022. "International Environmental Agreements and Black Technology," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 601-624, July.
    9. Irina Bakalova & Mariia Belaia, 2023. "Stability of Efficient International Agreements on Solar Geoengineering," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 673-712, November.

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    More about this item

    Keywords

    public goods; weakest-link technology; coalition formation;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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