文章基本信息

标题：A Virtuous Circle of Governance Contests with Externalities
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作者：Sung-Hoon Park ; Jason F. Shogren
期刊名称：Sustainability
印刷版ISSN：2071-1050
出版年度：2021
卷号：13
期号：14
页码：7766
DOI：10.3390/su13147766
语种：English
出版社：MDPI, Open Access Journal
摘要：Governments create contests to allocate resources to stakeholders, e.g., grants, contracts. The actions of these stakeholders can generate a positive externality for themselves—the contest winner can attract additional outside funding and donations from third-parties who want to jump on the winner’s bandwagon. Herein we examine the externalities arising from these contests created by governance and their impact on a virtuous circle of governance contests. Among various conditions that make governance virtuous, we focus on the equilibrium expected payoffs of stakeholders, the difference in them, and the rent-dissipation rates. Our study shows that the impact of externalities on the efficiency of governance depends on two key factors: (i) the choice of <i>governance contests</i>, the player-externality and the winner-externality, and (ii) the relative efficiency of stakeholders’ efforts.