Weakest-link public goods: giving in-kind or transferring money in a sequential game

This paper extends the leader–follower analysis of a weakest-link public good by permitting an agent to provide the good on one’s own territory or on another’s territory through an in-kind transfer. An equilibrium with cash transfers, followed by in-kind transfers from the income recipient, may be Pareto superior. Any cash transfers must be from the follower to the leader for welfare to improve.