Joint Projects without Commitment

S-Tier
Journal: Review of Economic Studies
Year: 1991
Volume: 58
Issue: 2
Pages: 259-276

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper concerns the pattern of contributions to a joint project when commitments and enforceable contracts are not available. We analyse a game in which partners alternate in making contributions to the project until the project is completed. Contributions are sunk when they are made. The game has a unique subgame perfect equilibrium path, which is inefficient in the sense that socially desirable projects may not be completed. By contrast, in a "subscription game" in which the cost of the contribution is borne only if and when the contributions committed to the project cover its cost, the outcome is efficient.

Technical Details

RePEc Handle
repec:oup:restud:v:58:y:1991:i:2:p:259-276.
Journal Field
General
Author Count
2
Added to Database
2026-01-24