Buchhilz, W.; Konrad, Kai A.; Lommerud, Kjell Erik
Stackelberg Leadership and Transfers in Private Provision of Public Goods.
Papers / Department of Economics, University of Bergen, 170
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We consider transfers in a Stackelberg game of private provision of a public good. It turns out that the agent who is the follower in the process of making voluntary contributions to a public good may have an incentive to make monetary transfers to the Stackelberg leader even in a situation where neither has a comparative advantage in making contributions to the public good.