Side payments in decision-making lead to less cooperation and fewer projects implemented.
Side payments can either help or hinder cooperation in decision-making. When parties can offer side payments, it can be necessary to ensure everyone participates. However, this can lead to delegates undervaluing projects, resulting in fewer projects being implemented. Side payments are not beneficial when there is little variation among parties but high uncertainty and project value. With more parties involved, cooperation may decrease without side payments, but strategic delegation also increases.