Alex Tabarrok suggested a modification called dominant assurance contracts where the mechanism designer gives every contributor a refund bonus if the contract fails. For example, in addition to returning their contributions, the mechanism designer might give all contributors an additional $5 if the total donations aren’t sufficient to support the project.
Alex Tabarrok suggested a modification called dominant assurance contracts where the mechanism designer gives every contributor a refund bonus if the contract fails. For example, in addition to returning their contributions the mechanism designer might give all contributors an additional $5 if the total donations ar,en’t sufficient to support the project.