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An Alternative Algorithm for Identifying Free Riders Based on a No-Free-Rider Nash Equilibrium

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  • Ratna K. Shrestha
  • Kwang Soo Cheong
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    Abstract

    In identifying the free riders in the voluntary provision of a pure public good, Andreoni and McGuire (1993) simplify Bergstrom, Blume, and Varian's (1986)algorithm by systematizing the selection process of potential contributors. We propose an alternative algorithm in which a concept of no-free-rider Nash equilibrium is utilized to identify potentially a large fraction of free riders in Nash equilibrium without conducting any Nash solution tests for them.

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    Bibliographic Info

    Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

    Volume (Year): 63 (2007)
    Issue (Month): 2 (June)
    Pages: 278-284

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    Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200706)63:2_278:aaafif_2.0.tx_2-e

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    Related research

    Keywords: public goods; free riders; algorithm; no-free-rider Nash equilibrium;

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    Cited by:
    1. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2011. "Interior matching equilibria in a public good economy: An aggregative game approach," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 639-645, August.

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