An interplay between intrinsic and extrinsic motivations on voluntary contributions to a public good in a large economy
This paper develops a theoretical model of voluntary contributions to a public good in a large economy where the impact of each individual's contribution on the total provision is negligible, and people's preference consists of extrinsic and intrinsic payoffs. Of particular interest is moral motivation that is assumed to be formulated internally and independently of other people in the intrinsic payoff. Adopting an equilibrium concept, we discuss public provision that could affect moral motivation. With this approach, we demonstrate that a wide variety of crowd-out/in hypotheses can occur within a single framework, once the interplay between extrinsic and intrinsic payoffs is introduced. The model provides the conditions under which public provision induces crowd-out as well as crowd-in. It is shown that the effect of public provision highly depends on the degree of motivational shift originating from the intrinsic payoff as well as the characteristics of the public good in relation to the private good in the extrinsic payoff.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 147 (2011)
Issue (Month): 1 (April)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/public+finance/journal/11127/PS2|
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.:
- Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
- Brekke, Kjell Arne & Kverndokk, Snorre & Nyborg, Karine, 2003.
"An economic model of moral motivation,"
Journal of Public Economics,
Elsevier, vol. 87(9-10), pages 1967-1983, September.
- Frey, Bruno S. & Meier, Stephan, 2004. "Pro-social behavior in a natural setting," Journal of Economic Behavior & Organization, Elsevier, vol. 54(1), pages 65-88, May.
- Geoffrey Brennan & Michael Brooks, 2007. "Esteem-based contributions and optimality in public goods supply," Public Choice, Springer, vol. 130(3), pages 457-470, March.
- Brunner, Eric J, 1998. "Free Riders or Easy Riders?: An Examination of the Voluntary Provision of Public Radio," Public Choice, Springer, vol. 97(4), pages 587-604, December.
- Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-48, February.
- Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
- Schram, Arthur, 2000. "Sorting Out the Seeking: The Economics of Individual Motivations," Public Choice, Springer, vol. 103(3-4), pages 231-58, June.
- David C. Ribar & Mark O. Wilhelm, 2002.
"Altruistic and Joy-of-Giving Motivations in Charitable Behavior,"
Journal of Political Economy,
University of Chicago Press, vol. 110(2), pages 425-457, April.
- Riber, D.C. & Wilhelm, M.O., 1996. "Altruistic and Joy-of-Giving Motivations in Charitable Behavior," Papers 1-96-4, Pennsylvania State - Department of Economics.
- Khanna, Jyoti & Sandler, Todd, 2000. "Partners in giving:: The crowding-in effects of UK government grants," European Economic Review, Elsevier, vol. 44(8), pages 1543-1556, August.
- Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
- Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
- Cowen, Tyler, 2002. "The Esteem Theory of Norms," Public Choice, Springer, vol. 113(1-2), pages 211-24, October.
- Hollander, Heinz, 1990. "A Social Exchange Approach to Voluntary Cooperation," American Economic Review, American Economic Association, vol. 80(5), pages 1157-67, December.
- Attanasio, Orazio & Rios-Rull, Jose-Victor, 2000. "Consumption smoothing in island economies: Can public insurance reduce welfare?," European Economic Review, Elsevier, vol. 44(7), pages 1225-1258, June.
- Okten, Cagla & Weisbrod, Burton A., 2000. "Determinants of donations in private nonprofit markets," Journal of Public Economics, Elsevier, vol. 75(2), pages 255-272, February.
- 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.
- Nyborg, Karine & Rege, Mari, 2003.
"Does Public Policy Crowd Out Private Contributions to Public Goods,"
Springer, vol. 115(3-4), pages 397-418, June.
- Karine Nyborg & Mari Rege, 2001. "Does Public Policy Crowd Out Private Contributions to Public Goods?," Discussion Papers 300, Statistics Norway, Research Department.
- Lindbeck, Assar, 1997.
"Incentives and Social Norms in Household Behavior,"
622, Stockholm University, Institute for International Economic Studies.
- Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-55, September.
- Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 791-810.
- Mari Rege, 2004. "Social Norms and Private Provision of Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(1), pages 65-77, 02.
When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:147:y:2011:i:1:p:29-41. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.