Abstract
A model is presented where the welfare of contributors to a public good can increase when they face an adversary who ex post sabotages their efforts. It is a best response for the adversary to maximally sabotage the smallest effort, thus increasing a defector's marginal product of effort. This creates a kink in the individual contributor's payoff function around the equilibrium effort, which can lock contributors into exerting high effort. For a sufficiently large degree of complementarity between the contributors’ efforts, the adversary increases contributors’ welfare. This result is robust when departing from several simplifying assumptions of the model.
| Original language | English |
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| Pages (from-to) | 2339–2365 |
| Journal | Economic Journal |
| Volume | 132 |
| Issue number | 647 |
| DOIs | |
| Publication status | Published - Oct 2022 |