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.
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|Date of revision:||May 2000|
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Staff General Research Papers
1630, Iowa State University, Department of Economics.
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Levine's Working Paper Archive
310, David K. Levine.
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- Lipford, Jody W, 1995. " Group Size and the Free-Rider Hypothesis: An Examination of New Evidence from Churches," Public Choice, Springer, vol. 83(3-4), pages 291-303, June.
- Bergstrom, Ted C. & Blume, Larry & Varian, Hal, 1992. "Uniqueness of Nash equilibrium in private provision of public goods : An improved proof," Journal of Public Economics, Elsevier, vol. 49(3), pages 391-392, December.
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- Cornes, Richard & Sandler, Todd, 1984. "Easy Riders, Joint Production, and Public Goods," Economic Journal, Royal Economic Society, vol. 94(375), pages 580-98, September.
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