Advanced Search
MyIDEAS: Login to save this article or follow this journal

A competitive equilibrium for a warm-glow economy

Contents:

Author Info

  • Nizar Allouch

    ()

Abstract

The warm-glow model (Andreoni in J Political Econ 97:1447–1458, 1989 ; Econ J 100:464–477, 1990 ) of public goods provision has received widespread interest, yet surprisingly most attention has focused on the voluntary contribution equilibrium of the model, and only very little attention has been devoted to the competitive equilibrium. In this paper, we introduce the concept of competitive equilibrium for a warm-glow economy (henceforth, warm-glow equilibrium) and establish both existence and welfare properties. The warm-glow equilibrium concept may prove to be very useful to the normative and positive theory of public goods provision. First, it is a price-based mechanism achieving efficient outcomes. Second, not only could the warm-glow equilibria outcomes serve as a point of reference to measure free-riding and welfare loss but also, as suggested by Bernheim and Rangel (Behavioral Economics and Its Applications, 2007 ), in large economies they may be approximated by Walrasian equilibria outcomes. Copyright Springer-Verlag 2013

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1007/s00199-012-0689-z
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 53 (2013)
Issue (Month): 1 (May)
Pages: 269-282

as in new window
Handle: RePEc:spr:joecth:v:53:y:2013:i:1:p:269-282

Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00199/index.htm

Order Information:
Web: http://link.springer.de/orders.htm

Related research

Keywords: Warm-glow; Public goods provision; Competitive equilibrium; Lindahl equilibrium; Asymptotic provision; H4; D6;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. anonymous, 1982. "1981/82 dairy season review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, october.
  2. Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
  3. Anonymous, 1982. "Cover And Contents Pages," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(01), July.
  4. anonymous, 1982. "Six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, november.
  5. anonymous, 1982. "District conditions," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr / Sum.
  6. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
  7. Nizar Allouch, 2010. "A Core-Equilibrium Convergence in a Public Goods Economy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(4), pages 857-870, 08.
  8. anonymous, 1982. "Economic policy measures," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, july.
  9. Yan Chen, 2002. "A family of supermodular Nash mechanisms implementing Lindahl allocations," Economic Theory, Springer, vol. 19(4), pages 773-790.
  10. Marialaura Pesce & Peter Cramton & Nicholas C. Yannelis, 2010. "A new perspective to rational expectations: maximin rational expectations equilibrium," Discussion Papers 1528, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  11. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
  12. Scott Condie & Jayant Ganguli, 2011. "Informational efficiency with ambiguous information," Economic Theory, Springer, vol. 48(2), pages 229-242, October.
  13. anonymous, 1982. "Six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, may.
  14. Luciano Castro & Marialaura Pesce & Nicholas Yannelis, 2011. "Core and equilibria under ambiguity," Economic Theory, Springer, vol. 48(2), pages 519-548, October.
  15. João Correia-da-Silva & Carlos Hervés-Beloso, 2009. "Prudent expectations equilibrium in economies with uncertain delivery," Economic Theory, Springer, vol. 39(1), pages 67-92, April.
  16. anonymous, 1982. "Time and economics," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 4-5.
  17. Anonymous, 1982. "Contents Page," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(03), December.
  18. David C. Ribar & Mark O. Wilhelm, 2002. "Altruistic and Joy-of-Giving Motivations in Charitable Behavior," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 425-457, April.
  19. Anonymous, 1982. "Front Cover," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(03), December.
  20. 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.
  21. Foley, Duncan K, 1970. "Lindahl's Solution and the Core of an Economy with Public Goods," Econometrica, Econometric Society, vol. 38(1), pages 66-72, January.
  22. Anonymous, 1982. "26th AAES Conference Papers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
  23. Milleron, Jean-Claude, 1972. "Theory of value with public goods: A survey article," Journal of Economic Theory, Elsevier, vol. 5(3), pages 419-477, December.
  24. van den Nouweland, A. & Wooders, M.H., 2001. "Axiomatization of Ratio Equilibria in Public Good Economies," The Warwick Economics Research Paper Series (TWERPS) 585, University of Warwick, Department of Economics.
  25. MONIQUE FLORENZANO & ELENA L. del MERCATO, 2006. "Edgeworth and Lindahl-Foley equilibria of a General Equilibrium Model with Private Provision of Pure Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(5), pages 713-740, December.
  26. Boyd, John III & Conley, John P., 1997. "Fundamental Nonconvexities in Arrovian Markets and a Coasian Solution to the Problem of Externalities," Journal of Economic Theory, Elsevier, vol. 72(2), pages 388-407, February.
  27. Gaube, Thomas, 2006. "Altruism and charitable giving in a fully replicated economy," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1649-1667, September.
  28. Conley John P., 1994. "Convergence Theorems on the Core of a Public Goods Economy: Sufficient Conditions," Journal of Economic Theory, Elsevier, vol. 62(1), pages 161-185, February.
  29. Scott Condie & Jayant V. Ganguli, 2011. "Ambiguity and Rational Expectations Equilibria," Review of Economic Studies, Oxford University Press, vol. 78(3), pages 821-845.
  30. Anonymous, 1982. "Cover And Contents Pages," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(01), July.
  31. Anonymous, 1982. "Cover And Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(2), June.
  32. Mas-Colell, Andreu & Silvestre, Joaquim, 1989. "Cost share equilibria: A Lindahlian approach," Journal of Economic Theory, Elsevier, vol. 47(2), pages 239-256, April.
  33. B. Douglas Bernheim & Antonio Rangel, 2005. "Behavioral Public Economics: Welfare and Policy Analysis with Non-Standard Decision-Makers," Discussion Papers 04-033, Stanford Institute for Economic Policy Research.
  34. Kaneko, Mamoru, 1977. "The ratio equilibrium and a voting game in a public goods economy," Journal of Economic Theory, Elsevier, vol. 16(2), pages 123-136, December.
  35. Anonymous, 1982. "Front Cover," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
  36. Payne, A. Abigail, 1998. "Does the government crowd-out private donations? New evidence from a sample of non-profit firms," Journal of Public Economics, Elsevier, vol. 69(3), pages 323-345, September.
  37. Akram Temimi, 2001. "Does Altruism Mitigate Free-riding and Welfare Loss?," Economics Bulletin, AccessEcon, vol. 8(5), pages 1-8.
  38. anonymous, 1982. "Money: demand and control," Economic Review, Federal Reserve Bank of San Francisco, issue Fall, pages 5-6.
  39. Anonymous, 1982. "Cover And Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(1), February.
  40. Anonymous, 1982. "Front Cover," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(01), April.
  41. Kingma, Bruce Robert, 1989. "An Accurate Measurement of the Crowd-Out Effect, Income Effect, and Price Effect for Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1197-1207, October.
  42. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  43. Anonymous, 1982. "Cover And Contents Pages," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(02), December.
  44. Bonnisseau, Jean-Marc, 1991. "Existence of Lindahl equilibria in economies with nonconvex production sets," Journal of Economic Theory, Elsevier, vol. 54(2), pages 409-416, August.
  45. Anonymous, 1982. "Contents Page," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(01), April.
  46. anonymous, 1982. "District conditions," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win.
  47. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
  48. Anonymous, 1982. "Contents Page," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), August.
  49. Anonymous, 1982. "Front Materials," 1982: Agriculture, Trade, and Development: A Comparative Look at U.S., Canadian, and European Community Policies Meeting, December 1982, Washington, DC 50848, International Agricultural Trade Research Consortium.
  50. Anonymous, 1982. "Cover And Contents Pages," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(02), December.
  51. Anonymous, 1982. "Cover And Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(3), September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Nizar Allouch, 2009. "A Core-equilibrium Convergence in an Economy with Public Goods," Working Papers 642, Queen Mary, University of London, School of Economics and Finance.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:53:y:2013:i:1:p:269-282. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.