Lévy-Garboua, Louis; Montmarquette, Claude; Villeval, … - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
2 policies that can be implemented in case of a budget deficit:
(taxation, rationing) x (uniform, individualized). In … the voluntary contributions of
other players. However, irresponsible behavior tends to create a budget deficit ex ante ….
Thus, when uniform taxation is used to finance a budget deficit, zero contribution is the likely
Nash equilibrium if
N
1 …