Public good provision in a repeated game: The role of small fixed costs of participation
Pecorino (1998) models tariff lobbying in a repeated game and finds that cooperation can be maintained in a large group, even though tariff lobbying provides a rival public good to interest group members. We add small fixed costs of participation to this model and find that cooperation must break down in large groups. By contrast, if a fully rival public good directly enters the utility function, then cooperation is possible in large groups, even with small participation costs. Thus, we find only partial support for Olson’s (1965) proposition that collective action must break down in large groups. Copyright Springer Science+Business Media, LLC 2007
Volume (Year): 130 (2007)
Issue (Month): 3 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/public+finance/journal/11127/PS2|
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.:
- Lambson, Val Eugene, 1984. "Self-enforcing collusion in large dynamic markets," Journal of Economic Theory, Elsevier, vol. 34(2), pages 282-291, December.
- Haag, Matthew & Lagunoff, Roger, 2007.
"On the size and structure of group cooperation,"
Journal of Economic Theory,
Elsevier, vol. 135(1), pages 68-89, July.
- Matthew Haag & Roger Lagunoff, 2002. "On the Size and Structure of Group Cooperation," Wallis Working Papers WP33, University of Rochester - Wallis Institute of Political Economy.
- Haag, Matthew & Roger Lagunoff, 2003. "On the Size and Structure of Group Cooperation," Royal Economic Society Annual Conference 2003 97, Royal Economic Society.
- Matthew Haag & Roger Lagunoff, 2002. "On the Size and Structure of Group Cooperation," Game Theory and Information 0209005, EconWPA.
- Matthew Haag & Roger Lagunoff, 2003. "On the Size and Structure of Group Cooperation," Working Papers 2003.54, Fondazione Eni Enrico Mattei.
- Haag, Matthew & Lagunoff, Roger, 2002. "On the Size and Structure of Group Cooperation," The Warwick Economics Research Paper Series (TWERPS) 650, University of Warwick, Department of Economics.
- Matthew Haag & Roger Lagunoff, 2010. "On the Size and Structure of Group cooperation," Levine's Working Paper Archive 506439000000000043, David K. Levine.
- Pecorino, Paul, 1999. "The effect of group size on public good provision in a repeated game setting," Journal of Public Economics, Elsevier, vol. 72(1), pages 121-134, April.
- Dixit, Avinash & Olson, Mancur, 2000. "Does voluntary participation undermine the Coase Theorem?," Journal of Public Economics, Elsevier, vol. 76(3), pages 309-335, June.
- Koppel, Oliver, 2004. "Public good provision in legislatures: the dynamics of enlargements," Economics Letters, Elsevier, vol. 83(1), pages 43-47, April.
- Nitzan, Shmuel, 1991. "Collective Rent Dissipation," Economic Journal, Royal Economic Society, vol. 101(409), pages 1522-1534, November.
- Pecorino, Paul, 1998. "Is There a Free-Rider Problem in Lobbying? Endogenous Tariffs, Trigger Strategies, and the Number of Firms," American Economic Review, American Economic Association, vol. 88(3), pages 652-660, June.
- Shapiro, Carl, 1989. "Theories of oligopoly behavior," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 6, pages 329-414 Elsevier.
- McMillan, John, 1979. "Individual incentives in the supply of public inputs," Journal of Public Economics, Elsevier, vol. 12(1), pages 87-98, August.
- Val Eugene Lambson, 1987. "Dynamic Behaviour in Large Markets for Differentiated Products," Review of Economic Studies, Oxford University Press, vol. 54(2), pages 293-300.
- Paul Pecorino & Akram Temimi, 2008. "The Group Size Paradox Revisited," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 785-799, October.
- Esteban, J. & Ray, D., 1999. "Collective Action and Group Size Paradox," Papers 23, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza. Full references (including those not matched with items on IDEAS)