Farsighted stability in provision of perfectly “Lumpy” public goods

Abstract: We examine farsighted stable sets in a public good provision game where the public good is perfectly “lumpy” as defined by Taylor [Taylor, M., 1987. The possibility of cooperation. Cambridge University Press, Cambridge]. In this case, Taylor argues that the game is not a prisoners’ dilemma game. While Suzuki and Muto [Suzuki, A., Muto, S., 2005. Farsighted stability in an -Person Prisoner’s dilemma. International Journal of Game Theory 33, 431–445] have shown that almost all outcomes included in a farsighted stable set of a prisoners’ dilemma game are Pareto efficient, we show in our game that almost all strictly individually rational outcomes are included in a farsighted stable set, including those that are not Pareto efficient. [Copyright &y& Elsevier]