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Notes on income heterogeneity and number of contributors: Public goods model

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  • Tatsuyoshi Miyakoshi
  • Kenichi Suzuki

Abstract

This paper proves that a large degree of income heterogeneity increases the number of free riders under the noncooperative Nash equilibrium of voluntary contributions to public goods with a Cobb–Douglas utility function. We prove this by investigating an algorithm structure that identifies free riders. We also support this proof by showing the numerical simulation results based on this algorithm.

Suggested Citation

  • Tatsuyoshi Miyakoshi & Kenichi Suzuki, 2018. "Notes on income heterogeneity and number of contributors: Public goods model," Pacific Economic Review, Wiley Blackwell, vol. 23(5), pages 732-741, December.
  • Handle: RePEc:bla:pacecr:v:23:y:2018:i:5:p:732-741
    DOI: 10.1111/1468-0106.12272
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