The Second-Order Dilemma of Public Goods and Capital Accumulation
AbstractThe second-order dilemma of public goods arises from individuals' incentive to free ride on a mechanism to solve the provision problem (first-order dilemma) of public goods. Without relying on social and behavioral arguments, we show by a voluntary participation game that the accumulation of public goods can mitigate the second-order dilemma in the long run. The analysis also shows that population decrease damages the accumulation of public goods.
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Bibliographic InfoPaper provided by Graduate School of Economics, Hitotsubashi University in its series Discussion Papers with number 2006-03.
Length: 34 p.
Date of creation: Aug 2006
Date of revision:
Note: This is a completely revised version of Discussion Paper #2005-10 "Accumulation of Public Goods and Population Change in a Voluntary Participation Game."
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Web page: http://www.econ.hit-u.ac.jp/
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public goods; second-order dilemma; voluntary participation; accumulation; group formation;
Other versions of this item:
- Akira Okada, 2008. "The second-order dilemma of public goods and capital accumulation," Public Choice, Springer, vol. 135(3), pages 165-182, June.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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.:
- Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
- 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.
- Paul Pecorino & Akram Temimi, 2007. "Public good provision in a repeated game: The role of small fixed costs of participation," Public Choice, Springer, vol. 130(3), pages 337-346, March.
- Dorsey, Robert E, 1992. " The Voluntary Contributions Mechanism with Real Time Revisions," Public Choice, Springer, vol. 73(3), pages 261-82, April.
- Okada, Akira, 1993. " The Possibility of Cooperation in an n-Person Prisoners' Dilemma with Institutional Arrangements," Public Choice, Springer, vol. 77(3), pages 629-56, November.
- Palfrey, Thomas R. & Rosenthal, Howard, 1984. "Participation and the provision of discrete public goods: a strategic analysis," Journal of Public Economics, Elsevier, vol. 24(2), pages 171-193, July.
- Mas-Colell, Andreu, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 625-41, June.
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