Collective Goods , Common Agency , and Third-party Intervention

  title={Collective Goods , Common Agency , and Third-party Intervention},
  author={Kevin Siqueira and Todd Sandler},
Voluntary contributions to multiple public goods may involve many contributors (principals) who condition their payments to a single provider (agent) based on realized provision. If the agent’s efforts on these goods are unobservable, then a common agency problem results with a third-best outcome owing to agency costs, free riding, and competitive interests… CONTINUE READING