Gonzalez, Paula; Hindriks, Jean; Lockwood, Ben; … - 2006
is because the event that only two out of three regions have high cost
now occurs with positive probability, and given … this event, pooling is “cheaper” for the
incumbent than when all three regions have high cost. But, when ego-rent is high …), and given this event, each region has an ex ante equal probability
of
1
3
of facing a distortion in public good supply …