Group size and free riding when private and public goods are gross substitutes
AbstractUsing the traditional model of voluntary public good provision, it is shown that an expansion of group size exacerbates free riding tendencies as long as private consumption and the public good are strictly normal and weak gross substitutes. This result generalizes a previous Cobb-Douglas example with respect to preferences and asymmetric equilibria.
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Bibliographic InfoPaper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse13_2000.
Date of creation: Dec 1999
Date of revision: May 2000
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private provision of public goods; group size;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-02-27 (All new papers)
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