Group size and free riding when private and public goods are gross substitutes
Using the traditional model of voluntary public good provision, it is shown that an expansion of group size exacerbates free riding tendencies as long as private consumption and the public good are strictly normal and weak gross substitutes. This result generalizes a previous Cobb-Douglas example with respect to preferences and asymmetric equilibria.
|Date of creation:||Dec 1999|
|Date of revision:||May 2000|
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References listed on IDEAS
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- Cornes, Richard & Hartley, Roger & Sandler, Todd, 1999.
" Equilibrium Existence and Uniqueness in Public Good Models: An Elementary Proof via Contraction,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 1(4), pages 499-509.
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