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By-product lobbying with rival public goods

  • Pecorino, Paul

A by-product firm uses the profits from the sale of a private good to finance provision of a public good. If the public good exhibits any degree of rivalry, an increase in population will lead to a reduction in the provision of the public good, when the number of by-product firms is constant. An increase in the number of by-product firms raises provision of the public good, if population is constant. When population and the number of by-product firms are increased in the same proportion, the effect on provision of the public good depends upon the degree of rivalry exhibited by the public good.

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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 26 (2010)
Issue (Month): 1 (March)
Pages: 114-124

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Handle: RePEc:eee:poleco:v:26:y:2010:i:1:p:114-124
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

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  1. repec:cup:cbooks:9780521477185 is not listed on IDEAS
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  13. Pecorino, Paul, 2001. "Can by-product lobbying firms compete?," Journal of Public Economics, Elsevier, vol. 82(3), pages 377-397, December.
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