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... non-credible commitment adds communication prior to contribution decisions, while the credible commitment adds communication and a commitment device to ensure that policymakers follow through on promises. Figure 5 below displays the main findings: it compares differences in citizen surplus (stage earnings minus the endowment) and policymaker rents (stage earnings minus amount in group account attributable to policymaker contribution). Non-credible commitment increases citizen surplus by 2.62 EMU (13% of the endowment), but the increase is not statistically significant (p=0.23). ...
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