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Lotteries, Group Size, and Public Good Provision

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  • PAUL PECORINO
  • AKRAM TEMIMI

Abstract

We analyze the effect of group size on public good provision under the Morgan (2000) lottery mechanism. For a pure public good, the lottery performs quite well as public good provision is found to increase in group size, even when the lottery prize is held constant. By contrast, for fully rival public goods, per capita provision is found to decrease in group size, even when the lottery prize is proportional to group size. Further, the per capita level of provision will approach zero when group size is sufficiently large. Copyright 2007 Blackwell Publishing, Inc..

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 9 (2007)
Issue (Month): 3 (06)
Pages: 451-465

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Handle: RePEc:bla:jpbect:v:9:y:2007:i:3:p:451-465

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Cited by:
  1. Jörg Franke & Wolfgang Leininger, 2013. "On the Efficient Provision of Public Goods by Means of Lotteries," CESifo Working Paper Series 4109, CESifo Group Munich.
  2. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
  3. Daniel McFadden, 2009. "The human side of mechanism design: a tribute to Leo Hurwicz and Jean-Jacque Laffont," Review of Economic Design, Springer, vol. 13(1), pages 77-100, April.
  4. Paul Pecorino & Akram Temimi, 2012. "Lotteries, public good provision and the degree of rivalry," International Tax and Public Finance, Springer, vol. 19(2), pages 195-202, April.

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