The second-order dilemma of public goods and capital accumulation
AbstractThe second-order dilemma of public goods arises from individuals' incentive to free ride on a mechanism to solve the provision problem (first-order dilemma) of public goods. Without relying on social and behavioral arguments, we show by a voluntary participation game that the accumulation of public goods can mitigate the second-order dilemma in the long run. The analysis also shows that population decrease damages the accumulation of public goods.
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Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 135 (2008)
Issue (Month): 3 (June)
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Web page: http://www.springerlink.com/link.asp?id=100332
Public goods; Second-order dilemma; Voluntary participation; Accumulation; Group formation; C72; D7; H41;
Other versions of this item:
- Okada, Akira, 2006. "The Second-Order Dilemma of Public Goods and Capital Accumulation," Discussion Papers 2006-03, Graduate School of Economics, Hitotsubashi University.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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- Mas-Colell, Andreu, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 625-41, June.
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- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- Palfrey, Thomas R. & Rosenthal, Howard, 1984. "Participation and the provision of discrete public goods: a strategic analysis," Journal of Public Economics, Elsevier, vol. 24(2), pages 171-193, July.
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