IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v125y2014i2p215-218.html
   My bibliography  Save this article

Group size paradox and public goods

Author

Listed:
  • Bag, Parimal Kanti
  • Mondal, Debasis

Abstract

In an economy with voluntarily provided public goods and private product varieties, and a general class of CES preferences, it is shown that aggregate public good contribution follows an inverted-U pattern with respect to group size when private and public goods are substitutable in preferences. With complementarity, however, aggregate provision grows monotonically with group size.

Suggested Citation

  • Bag, Parimal Kanti & Mondal, Debasis, 2014. "Group size paradox and public goods," Economics Letters, Elsevier, vol. 125(2), pages 215-218.
    • Handle: RePEc:eee:ecolet:v:125:y:2014:i:2:p:215-218
    DOI: 10.1016/j.econlet.2014.09.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176514003486
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2014.09.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chamberlin, John, 1974. "Provision of Collective Goods As a Function of Group Size," American Political Science Review, Cambridge University Press, vol. 68(2), pages 707-716, June.
    2. Paul Pecorino, 2009. "Monopolistic Competition, Growth and Public Good Provision," Economic Journal, Royal Economic Society, vol. 119(534), pages 298-307, January.
    3. Furusawa, Taiji & ,, 2011. "Contributing or free-riding? Voluntary participation in a public good economy," Theoretical Economics, Econometric Society, vol. 6(2), May.
    4. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    5. Paul Pecorino, 2009. "Public goods, group size, and the degree of rivalry," Public Choice, Springer, vol. 138(1), pages 161-169, January.
    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. Martin McGuire, 1974. "Group size, group homo-geneity, and the aggregate provision of a pure public good under cournot behavior," Public Choice, Springer, vol. 18(1), pages 107-126, June.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takuma Wakayama & Takehiko Yamato, 2023. "Comparison of the voluntary contribution and Pareto-efficient mechanisms under voluntary participation," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(2), pages 517-553, June.
    2. Paul Pecorino, 2013. "Monopolistic Competition and Public Good Provision with By‐product Firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(4), pages 875-893, December.
    3. Debasis Mondal, 2015. "Private provision of public good and immiserizing growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(1), pages 29-49, June.
    4. Masatoshi Yoshida & Stephen J. Turnbull & Mitsuru Ota, 2023. "Environmental offsets and production externalities under monopolistic competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(2), pages 305-325, April.
    5. Masatoshi Yoshida & Stephen J. Turnbull, 2021. "Voluntary provision of environmental offsets under monopolistic competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(4), pages 965-994, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Debasis Mondal, 2015. "Private provision of public good and immiserizing growth," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(1), pages 29-49, June.
    2. Masatoshi Yoshida & Stephen J. Turnbull, 2021. "Voluntary provision of environmental offsets under monopolistic competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(4), pages 965-994, August.
    3. Liu, Weifeng Larry & Sandler, Todd, 2024. "Public goods, group size, and provision aggregation," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 146-167.
    4. Brunner, Eric & Sonstelie, Jon, 2003. "School finance reform and voluntary fiscal federalism," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2157-2185, September.
    5. Masatoshi Yoshida & Stephen J. Turnbull & Mitsuru Ota, 2023. "Environmental offsets and production externalities under monopolistic competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(2), pages 305-325, April.
    6. Wang, Chengsi & Zudenkova, Galina, 2016. "Non-monotonic group-size effect in repeated provision of public goods," European Economic Review, Elsevier, vol. 89(C), pages 116-128.
    7. Paul Pecorino, 2015. "Olson’s Logic of Collective Action at fifty," Public Choice, Springer, vol. 162(3), pages 243-262, March.
    8. Tamai, Toshiki, 2018. "Dynamic provision of public goods under uncertainty," Economic Modelling, Elsevier, vol. 68(C), pages 409-415.
    9. Todd Sandler, 2015. "Collective action: fifty years later," Public Choice, Springer, vol. 164(3), pages 195-216, September.
    10. Anja Brumme & Wolfgang Buchholz & Dirk Rübbelke, 2023. "The purity of impure public goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(3), pages 493-514, June.
    11. Matthew J. Kotchen, 2006. "Green Markets and Private Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 816-845, August.
    12. Thierry Pénard & Sylvain Dejean & Raphaël Suire, 2011. "Olson’s Paradox Revisited: An Empirical Analysis of Incentives to Contribute in P2P File-sharing Communities," Economics Working Paper Archive (University of Rennes & University of Caen) 201105, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    13. Paul Pecorino, 2024. "Public good provision with redistributive taxation," Economics and Politics, Wiley Blackwell, vol. 36(1), pages 407-431, March.
    14. Konrad, Kai A., 1992. "The advantage of being poor: private provision of public goods, strategic incentives and the role of public provision," EconStor Research Reports 112687, ZBW - Leibniz Information Centre for Economics.
    15. Chin Lim, 2003. "Public Good Contributions Between Communities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(3), pages 541-548, July.
    16. Wolfgang Buchholz & Kai Konrad, 1994. "Global environmental problems and the strategic choice of technology," Journal of Economics, Springer, vol. 60(3), pages 299-321, October.
    17. Jean Hindriks & Romans Pancs, 2002. "Free Riding on Altruism and Group Size," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 335-346, July.
    18. Morath, Florian, 2010. "Strategic information acquisition and the mitigation of global warming," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 206-217, March.
    19. Jean Hindriks & Romans Pancs, 2002. "Free Riding on Altruism and Group Size," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(3), pages 335-346, July.
    20. Toshihiro Ihori, 2000. "Defense Expenditures and Allied Cooperation," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 854-867, December.

    More about this item

    Keywords

    Public good; Group size; Monopolistic competition; General equilibrium; Partial equilibrium;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:125:y:2014:i:2:p:215-218. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.