Agreement Formation in International Public Goods Provision with Heterogeneous Agents

Abstract

"In this paper, we analyze the impact heterogeneity in underlying country characteristics has on the possibility of finding a provision standard for international public goods. In doing so, we focus on differences in provision costs, endowment and valuation of the public good. We commence with an analysis of the direct influence of heterogeneity on negotiation outcomes. Subsequently, we take the analysis a step further in focusing on the role the political process plays in shaping the way negotiation outcomes are influenced by heterogeneity."