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On the Maximum Number of Players Voluntarily Contributing to Two or More Public Goods

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  • Nakagawa, Shintaro

Abstract

Cornes and Itaya (2010) showed that in a two-player game of voluntary provision of two public goods if the players have different preferences, and if both players simultaneously make positive contributions to both public goods, the system of equations representing the Nash equilibrium is overdetermined. We extend this proposition to a model of voluntary provision of two or more public goods and show that if the players have different preferences, and if the number of players who contribute simultaneously to two or more public goods is more than the number of public goods, the system representing the Nash equilibrium is overdetermined. This result implies that in a large group, the share of players contributing to multiple public goods may well be quite small and the majority of the players may contribute to at the most one public good.

Suggested Citation

  • Nakagawa, Shintaro, 2019. "On the Maximum Number of Players Voluntarily Contributing to Two or More Public Goods," MPRA Paper 92719, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92719
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    File URL: https://mpra.ub.uni-muenchen.de/92719/1/MPRA_paper_92719.pdf
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    References listed on IDEAS

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    1. R. C. Cornes & A. G. Schweinberger, 1996. "Free Riding and the Inefficiency of the Private Production of Pure Public Goods," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 70-91, February.
    2. Martin C. McGuire & Carl H. Groth, 1985. "A Method for Identifying the Public Good Allocation Process Within a Group," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(Supplemen), pages 915-934.
    3. Andreoni, James & McGuire, Martin C., 1993. "Identifying the free riders : A simple algorithm for determining who will contribute to a public good," Journal of Public Economics, Elsevier, vol. 51(3), pages 447-454, July.
    4. Toshihiro Ihori & Martin McGuire & Shintaro Nakagawa, 2014. "International Security, Multiple Public Good Provisions, and The Exploitation Hypothesis," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(3), pages 213-229, June.
    5. Dasgupta, Indraneel & Kanbur, Ravi, 2003. "Bridging Communal Divides: Separation, Patronage, Integration," Working Papers 127235, Cornell University, Department of Applied Economics and Management.
    6. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    7. Kemp, Murray C., 1984. "A note of the theory of international transfers," Economics Letters, Elsevier, vol. 14(2-3), pages 259-262.
    8. Richard Cornes & Jun‐Ichi Itaya, 2010. "On the Private Provision of Two or More Public Goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 363-385, April.
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    More about this item

    Keywords

    Voluntary provision; multiple public goods;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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