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By-product lobbying with rival public goods

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  • Pecorino, Paul

Abstract

A by-product firm uses the profits from the sale of a private good to finance provision of a public good. If the public good exhibits any degree of rivalry, an increase in population will lead to a reduction in the provision of the public good, when the number of by-product firms is constant. An increase in the number of by-product firms raises provision of the public good, if population is constant. When population and the number of by-product firms are increased in the same proportion, the effect on provision of the public good depends upon the degree of rivalry exhibited by the public good.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 26 (2010)
Issue (Month): 1 (March)
Pages: 114-124

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Handle: RePEc:eee:poleco:v:26:y:2010:i:1:p:114-124

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Web page: http://www.elsevier.com/locate/inca/505544

Related research

Keywords: By-product lobbying Free-rider problem Collective action;

References

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  1. Pecorino, Paul, 2001. "Can by-product lobbying firms compete?," Journal of Public Economics, Elsevier, vol. 82(3), pages 377-397, December.
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  8. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 100(401), pages 464-77, June.
  9. Matthew J. Kotchen, 2003. "Green Markets and Private Provision of Public Goods," Department of Economics Working Papers 2003-05, Department of Economics, Williams College.
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Cited by:
  1. 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.
  2. Ryvkin, Dmitry, 2010. "Contests with private costs: Beyond two players," European Journal of Political Economy, Elsevier, vol. 26(4), pages 558-567, December.

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