Dominant Assurance Contract

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= strategy that could be used by Crowdfunding initiatives such as Fundable.

Description

"In a dominant assurance contract if the group goal is not met then everyone who offered to contribute is given their money back plus a bonus. It turns out that it then becomes a dominant strategy to contribute and the public good is always provided!"


More Information

Essay at http://mason.gmu.edu/~atabarro/PrivateProvision.pdf

Commentary by Mike Linksvayer, at

  1. http://gondwanaland.com/mlog/2005/05/13/public-goods-group-shopping/
  2. http://gondwanaland.com/mlog/2005/06/02/sitaker-dominant-assurance-contracts/