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Cited by 373

The DOI matches its Crossref record; 48 of the 48 references it cites were found in a registry or an index.

Institution Formation in Public Goods Games

Open access
Kosfeld, Michael, Okada, Akira, Riedl, Arno·2009·American Economic Review

Abstract

Sanctioning institutions are of utmost importance for overcoming free-riding tendencies and enforcing outcomes that maximize group welfare in social dilemma situations. We investigate, theoretically and experimentally, the endogenous formation of institutions in public goods provision. Our theoretical analysis shows that players may form sanctioning institutions in equilibrium, including those governing only a subset of players. The experiment confirms that institutions are formed and that it positively affects cooperation and group welfare. However, the data also shows that success is not guaranteed. Players are unwilling to implement equilibrium institutions in which some players have the opportunity to free ride. Our results emphasize the role of fairness in the institution formation process. (JEL C72, D02, H41)

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Metadata

Authors
Kosfeld, M., Okada, A., & Riedl, A.
Venue
American Economic Review
Published
2009-08-01
Volume
99
Issue
4
Pages
1335-1355
ISSN
0002-8282 (ISSN-L)
OpenAlex
W2129752902
Cited by
373
References
48
FWCI
56.53
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Institution Formation in Public Goods Games. https://app.cochat.ai/papers/10.1257/aer.99.4.1335
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Kosfeld, M., Okada, A., & Riedl, A. (2009). Institution Formation in Public Goods Games. American Economic Review. https://doi.org/10.1257/aer.99.4.1335

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Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.