Consider a developing country that has the potential for biodiversity conservation, and developed countries that benefit from biodiversity but are not in position to produce it. From the statu quo, some incremental protections of biodiversity would be harmful for the developing country but would...

The paper reports on experiments designed to compare the performance of two incentive mechanisms in public goods problems. One mechanism rewards and penalizes deviations from the average contribution of the other agents to the public good (tax-subsidy mechanism). Another mechanism allows agents...