The Difficulty of Easy Projects

نویسندگان

چکیده

We consider binary private contributions to public good projects that succeed when the number of contributors exceeds a threshold. show for standard distributions contribution costs, valuable threshold are more likely they require contributors. Raising success reduces free-riding incentives, and this strategic effect dominates direct effect. Common intuition easier only holds cost with right tails fatter than Cauchy. Our results suggest government grants can reduce likelihood succeed. (JEL D71, H41, H81)

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ژورنال

عنوان ژورنال: The American economic review

سال: 2021

ISSN: ['2640-205X', '2640-2068']

DOI: https://doi.org/10.1257/aeri.20200311