Free Riding on Altruism and Group Size
It is shown that altruism does not affect the equilibrium provision of public goods although altruism takes the form of unconditional commitment to contribute. The reason is that altruistic contributions completely crowd out selfish contributions. That is, egoists free ride on altruism. It is also shown that public goods are less likely to be provided in larger groups.
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- Palfrey, Thomas & Rosenthal, Howard., 1983.
"Participation and the Provision of Discrete Public Goods: A Strategic Analysi,"
465, California Institute of Technology, Division of the Humanities and Social Sciences.
- Palfrey, Thomas R. & Rosenthal, Howard, 1984. "Participation and the provision of discrete public goods: a strategic analysis," Journal of Public Economics, Elsevier, vol. 24(2), pages 171-193, July.
- Palfrey, Thomas R. & Rosenthal, Howard, 1988.
"Private incentives in social dilemmas : The effects of incomplete information and altruism,"
Journal of Public Economics,
Elsevier, vol. 35(3), pages 309-332, April.
- Palfrey, Thomas R. & Rosenthal, Howard., 1987. "Private Incentives in Social Dilemmas: The Effect of Incomplete Information and Altruism," Working Papers 659, California Institute of Technology, Division of the Humanities and Social Sciences.
- Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
- Bliss, Christopher & Nalebuff, Barry, 1984. "Dragon-slaying and ballroom dancing: The private supply of a public good," Journal of Public Economics, Elsevier, vol. 25(1-2), pages 1-12, November.
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