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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Levine's Working Paper Archive
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- Cornes, Richard & Hartley, Roger & Sandler, Todd, 1999.
"Equilibrium Existence and Uniqueness in Public Good Models: An Elementary Proof Via Contraction,"
Staff General Research Papers Archive
1630, Iowa State University, Department of Economics.
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- Jean-Jacques Laffont, 1988. "Fundamentals of Public Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121271, March.
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