HomePublications

Co-Financing Agreements and Reciprocity: When 'No Deal' is a Good Deal

Research output: Working paper

Open Access permissions

Open

Documents

Links

Authors

Organisational units

Abstract

Institutions for co-financing agreements often exist to encourage public good investment. Can such frameworks deliver maximal investment when agents are motivated by reciprocity? We demonstrate that indeed they can, but not in the way one might expect. If maximal investment is impossible in the absence of the institution and public good returns are high, then an agreement signed by all parties cannot lead to full investment. However, if all parties reject the co-financing agreement, then an informal deal to invest can lead to full investment. Agreement institutions may thus do more than just facilitate the signing of formal agreements; they may play a critical role in igniting informal cooperation underpinned by reciprocity.

Details

Original languageEnglish
Publication statusPublished - 11 Nov 2016

Publication series

NameUEA School of Economics Working Paper Series
PublisherUEA
No.2016-12

View graph of relations

ID: 97015813

Related by author
  1. Introduction to Special Issue on Psychological Game Theory

    Research output: Contribution to journalEditorial

  2. Agreements with Reciprocity: Co-financing and MOUs

    Research output: Contribution to journalArticle

  3. Guilt and participation

    Research output: Contribution to journalArticle

  4. Reciprocity networks and the participation problem

    Research output: Contribution to journalArticle

  5. How category reporting can improve fundraising

    Research output: Contribution to journalArticle