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On the efficient provision of public goods by means of biased lotteries: The two player case

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Listed author(s):
  • Franke, Jörg
  • Leininger, Wolfgang

Abstract

In this paper we analyze how biased lotteries can be used to overcome the free-riding problem in voluntary public good provision. We characterize the optimal combinations of bias and lottery prize and the conditions that guarantee efficient public good provision in equilibrium.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176514004133
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 125 (2014)
Issue (Month): 3 ()
Pages: 436-439

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Handle: RePEc:eee:ecolet:v:125:y:2014:i:3:p:436-439
DOI: 10.1016/j.econlet.2014.10.024
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

Keywords: Public good provision; Biased lotteries; Charities;

Find related papers by JEL classification:

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

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  1. Giebe, Thomas & Schweinzer, Paul, 2014. "Consuming your way to efficiency: Public goods provision through non-distortionary tax lotteries," European Journal of Political Economy, Elsevier, vol. 36(C), pages 1-12.
  2. John Morgan, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 761-784.
  3. 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.
  4. Martin Kolmar & martin.kolmar@unisg.ch & Andreas Wagener, 2012. "Contests and the Private Production of Public Goods," Southern Economic Journal, Southern Economic Association, vol. 79(1), pages 161-179, July.
  5. Paul Pecorino & Akram Temimi, 2007. "Lotteries, Group Size, and Public Good Provision," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(3), pages 451-465, 06.
  6. Jörg Franke & Christian Kanzow & Wolfgang Leininger & Alexandra Schwartz, 2013. "Effort maximization in asymmetric contest games with heterogeneous contestants," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(2), pages 589-630, March.
  7. Duncan, Brian, 2002. "Pumpkin Pies and Public Goods: The Raffle Fundraising Strategy," Public Choice, Springer, vol. 111(1-2), pages 49-71, March.
  8. Lange, Andreas, 2006. "Providing public goods in two steps," Economics Letters, Elsevier, vol. 91(2), pages 173-178, May.
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Cited by:

  1. Damianov, Damian S. & Peeters, Ronald, 2017. "On the disclosure of ticket sales in charitable lotteries," Economics Letters, Elsevier, vol. 150(C), pages 73-76.

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