Consider a setting in which several groups of individuals with common interests (“clubs”) compete with each other for recognition by other individuals. Depending on the context, recognition may be expressed by these other individuals joining a club, or choosing one club to admire. Clubs compete by providing a public good. Some examples for applications of this model include: (i) Churches missionarizing to attract new members; (ii) Open-source software projects and Wikipedia; (iii) professors of an economics department competing to attract graduate students to their respective fields; (iv) artists and researchers aiming for recognition of their work by their peers and the public. Competition between clubs increases the public good provision level, and a sufficiently strong competition effect may even lead to overprovision.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1920.
Find related papers by JEL classification: H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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.:
Roland Bénabou & Jean Tirole, 2004.
"Incentives and Prosocial Behavior,"
Working Papers
137, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
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