Bargaining over local public good provision in nested social dilemmas: A comparative study of variation from South India

Abstract

ABSTRACTIn rural India, decentralized government schemes and assembly constituency development programs represent major channels through which local public good provision is realized. This polycentric governance structure confronts local leaders with a distributional conflict, which is nested in a social dilemma situation. Based on a controlled case study approach, we investigate the provision of small-scale infrastructure in three South Indian communities. Apart from roads and drinking water facilities that directly appeal to the residents of a community, local leaders bargain over infrastructure contracts, which serve as patronage resources in interactions with politicians from higher government levels. A comparative game-theoretic analysis of the results suggests that coordination through political party identities has translated into alternative bargaining strategies and hence varying distributional outcomes regarding contracts and local public goods in the communities under review. The study concludes with recommendations for polycentric institutional design.