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Group Specific Public Goods, Orchestration of Interest Groups and Free Riding

Author

Listed:
  • Gil S. Epstein

    () (Bar Ilan University,Israel and CReAM, London, IZA, Bonn)

  • Yosef Mealem

    (Netanya Academic College, Netanya, Israel)

Abstract

We consider a two group contest over a group specific public good where each member of a group has a different benefit from the good. Our model can be interpreted in two ways: Each of the players has a non-linear investment cost in the contest, or alternatively, the returns to effort are decreasing as reflected in the contest success function. In the first part of the paper we show conditions under which freeriding decreases and consider the different properties of the equilibrium. In the second part of the paper we develop the properties of the optimal formation of the group and its affect on the equilibrium outcome.

Suggested Citation

  • Gil S. Epstein & Yosef Mealem, 2009. "Group Specific Public Goods, Orchestration of Interest Groups and Free Riding," Working Papers 2009-02, Bar-Ilan University, Department of Economics.
  • Handle: RePEc:biu:wpaper:2009-02
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    File URL: http://www.biu.ac.il/soc/ec/wp/2009-02/2009-02.pdf
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    Citations

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    Cited by:

    1. Arye L. Hillman & Ngo Van Long, 2017. "Rent Seeking: The Social Cost of Contestable Benefits," CESifo Working Paper Series 6462, CESifo Group Munich.
    2. Shmuel Nitzan & Kaoru Ueda, 2014. "Intra-group heterogeneity in collective contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 219-238, June.
    3. Gil S Epstein & Yosef Mealem, 2012. "Cooperation and Effort in Group Contests," Economics Bulletin, AccessEcon, vol. 32(1), pages 624-638.
    4. Arye Hillman & Ngo Van Long, 2017. "The social cost of contestable benefits," CIRANO Working Papers 2017s-11, CIRANO.
    5. Dmitriy Veselov & Alexander Yarkin, 2015. "The Great Divergence Revisited: Industrialization, Inequality and Political Conflict in the Unified Growth Model," HSE Working papers WP BRP 118/EC/2015, National Research University Higher School of Economics.
    6. Brookins, Philip & Lightle, John P. & Ryvkin, Dmitry, 2015. "Optimal sorting in group contests with complementarities," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 311-323.
    7. repec:kap:pubcho:v:174:y:2018:i:3:d:10.1007_s11127-018-0506-8 is not listed on IDEAS
    8. Indraneel Dasgupta & Ranajoy Guha Neogi, 2018. "Between-group contests over group-specific public goods with within-group fragmentation," Public Choice, Springer, vol. 174(3), pages 315-334, March.
    9. Gil Epstein & Yosef Mealem, 2015. "Politicians, governed versus non-governed interest groups and rent dissipation," Theory and Decision, Springer, vol. 79(1), pages 133-149, July.

    More about this item

    Keywords

    Contests; rent seeking; public good; heterogeneity; free-riding; orchestration of interest groups;

    JEL classification:

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

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