Burden sharing has been a contentious topic from the early years of the North Atlantic alliance. Since 1966, it has also been a recurring test of the theory of collective action. Here we report the results of new tests of Mancur Olson's theory and its extension, the joint-product model, proposed by Todd Sandler et al. Our analyses of pooled cross-sectional and time-series data for fifteen NATO allies, 1950-86, offers the first full, independent test of the joint-product model. While our analyses demonstrate the theoretical value of Sandler's model, they also indicate that Olson's original emphasis on the public nature of the good supplied by the alliance remains valid. Some evidence regarding the role of the United States suggests that NATO has been a uniquely privileged group.
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