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Group Specific Public Goods, Orchestration of Interest Groups and Free Riding

Author

Listed:
  • Gil S. Epstein

    (Bar Ilan University,Israel and CReAM, London, IZA, Bonn)

  • Yosef Mealem

    (Netanya Academic College, Netanya, Israel)

Abstract

We consider a two group contest over a group specific public good where each member of a group has a different benefit from the good. Our model can be interpreted in two ways: Each of the players has a non-linear investment cost in the contest, or alternatively, the returns to effort are decreasing as reflected in the contest success function. In the first part of the paper we show conditions under which freeriding decreases and consider the different properties of the equilibrium. In the second part of the paper we develop the properties of the optimal formation of the group and its affect on the equilibrium outcome.

Suggested Citation

  • Gil S. Epstein & Yosef Mealem, 2009. "Group Specific Public Goods, Orchestration of Interest Groups and Free Riding," Working Papers 2009-02, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2009-02
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    More about this item

    Keywords

    Contests; rent seeking; public good; heterogeneity; free-riding; orchestration of interest groups;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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