Global public good agreements with fixed costs.

International cooperation to provide global public goods is often weak: coalitions tend to be small, or, when large coalitions form, the resulting welfare gains are limited—a result known as the 'paradox of cooperation'. We revisit this issue by analyzing a two-stage coalition formation game in whic...

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Publicado en:Oxford Economic Papers Vol. 78; no. 2; pp. 487 - 511
Autores principales: Finus, Michael, Furini, Francesco
Formato: Artículo
Publicado: Oxford University Press / USA Apr2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Global public good agreements with fixed costs.
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          Finus, Michael
          Furini, Francesco
        affil:
          Department of Economics, Karl-Franzens-Universität Graz, Universitätsstraße 15/F4, Graz, 8010, Austria
          Department of Socioeconomics, Universität Hamburg, Welckerstraße 8, Hamburg, 20354, Germany
      su:
        Public goods
        International cooperation
        Coalitions
        Game theory
        Cooperation
        Overhead costs
      sug:
        subj:
          Public goods
          International cooperation
          Coalitions
          Game theory
          Cooperation
          Overhead costs
      keyword:
        C72
        coalition stability
        copyrightHolder:Oxford University Press
        copyrightYear:2026
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        fixed costs
        global public good provision
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        H87
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        international treaties
        publisher:Oxford University Press
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        C72
        coalition stability
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        D62
        fixed costs
        global public good provision
        H41
        H87
        inLanguage:en
        international treaties
        publisher:Oxford University Press
        Q50
        sameAs:https://dx.doi.org/10.1093/oep/gpag005
      ab: International cooperation to provide global public goods is often weak: coalitions tend to be small, or, when large coalitions form, the resulting welfare gains are limited—a result known as the 'paradox of cooperation'. We revisit this issue by analyzing a two-stage coalition formation game in which contributing to a global public good involves not only variable costs but also fixed upfront costs. This cost structure fundamentally alters cooperation incentives. Fixed costs can generate corner provision outcomes and qualitatively different coalition formation scenarios. Depending on their magnitude, fixed costs can alter the 'paradox of cooperation' by making broad and effective international agreements both stable and welfare-enhancing.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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