Pareto meets Olson – A Note on Pareto-optimality and Group Size in Linear Public Goods Games
In this paper I examine the relationship between Pareto-optimality and group size in linear public goods games or experiments. In particular, I use the standard setting of homogeneous linear public goods experiments and apply a recently developed tool to identify all Pareto-optimal allocations in such settings. It turns out that under any conceivable circumstances, ceteris paribus, small groups have a higher Pareto-ratio (Pareto-optimal allocations over total allocations) than large groups. Hence, if Pareto-optimality of an allocation is a property that makes such allocations acceptable and maintainable, small groups will find is easier to provide Pareto-optimal amounts of a public good than large groups. This is a novel reasoning for Mancur Olson’s claim, in particular, with respect to what he has termed inclusive goods and inclusive groups.
|Date of creation:|
|Contact details of provider:|| Postal: Am Stadtgraben 9, 48143 Münster|
Phone: (02 51) 83-2 29 71
Fax: (02 51) 83-2 29 70
Web page: http://www.wiwi.uni-muenster.de/insiwo
More information through EDIRC
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.:
- Michael Pickhardt, 2005. "Teaching Public Goods Theory With a Classroom Game," The Journal of Economic Education, Taylor & Francis Journals, vol. 36(2), pages 145-159, April.
- Jennifer Zelmer, 2003. "Linear Public Goods Experiments: A Meta-Analysis," Experimental Economics, Springer;Economic Science Association, vol. 6(3), pages 299-310, November.
- Brandts, Jordi & Schram, Arthur, 2001. "Cooperation and noise in public goods experiments: applying the contribution function approach," Journal of Public Economics, Elsevier, vol. 79(2), pages 399-427, February.
- Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
- Sascha Hokamp & Michael Pickhardt, "undated".
"Pareto-optimality in Linear Public Goods Games,"
201171, Institute of Spatial and Housing Economics, Munster Universitary.
When requesting a correction, please mention this item's handle: RePEc:muc:wpaper:201174. 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: (Norbert Hiller)
If references are entirely missing, you can add them using this form.