Burden Sharing and Public Good Provision: A Numerical Sensitivity Analysis

Abstract

This paper reports on our numerical analysis of the model developed in Rausser-Simon 1991a and 1991b. We will assume that the reader is thoroughly familiar with the latter paper and refer frequently to the terminology introduced there. Two conclusions were readily apparent from the paper. First, many of the more interesting comparative statics questions we want to ask about the model are unlikely to have simple and determinate answers. In particular, it is especially difficult to determine the impact on alliance performance of certain kinds of changes in the spatial configuration and distribution of power within the alliance. The reason is that the fortunes of different alliance members are intertwined in highly intricate ways. Distributional changes set off a chain of conflicting events that are extremely difficult to disentangle