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An Alternative Algorithm for Identifying Free Riders Based on a No-Free-Rider Nash Equilibrium

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  • Ratna K. Shrestha
  • Kwang Soo Cheong

Abstract

In identifying the free riders in the voluntary provision of a pure public good, Andreoni and McGuire (1993) simplify Bergstrom, Blume, and Varian's (1986)algorithm by systematizing the selection process of potential contributors. We propose an alternative algorithm in which a concept of no-free-rider Nash equilibrium is utilized to identify potentially a large fraction of free riders in Nash equilibrium without conducting any Nash solution tests for them.

Suggested Citation

  • Ratna K. Shrestha & Kwang Soo Cheong, 2007. "An Alternative Algorithm for Identifying Free Riders Based on a No-Free-Rider Nash Equilibrium," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(2), pages 278-284, June.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(200706)63:2_278:aaafif_2.0.tx_2-e
    DOI: 10.1628/001522107X220116
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    References listed on IDEAS

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    1. Murdoch, James C. & Sandler, Todd, 1997. "The voluntary provision of a pure public good: The case of reduced CFC emissions and the Montreal Protocol," Journal of Public Economics, Elsevier, vol. 63(3), pages 331-349, February.
    2. Buchholz, Wolfgang & Konrad, Kai A., 1995. "Strategic transfers and private provision of public goods," Journal of Public Economics, Elsevier, vol. 57(3), pages 489-505, July.
    3. Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
    4. 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.
    5. 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.
    6. Sandler,Todd, 2004. "Global Collective Action," Cambridge Books, Cambridge University Press, number 9780521834773, November.
    7. Sandler,Todd, 2004. "Global Collective Action," Cambridge Books, Cambridge University Press, number 9780521542548, November.
    8. Ratna K. Shrestha & James P. Feehan, 2002. "Contributions to International Public Goods and the Notion of Country Size," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(4), pages 551-559, December.
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    Cited by:

    1. Buchholz, Wolfgang & Cornes, Richard & Rübbelke, Dirk, 2011. "Interior matching equilibria in a public good economy: An aggregative game approach," Journal of Public Economics, Elsevier, vol. 95(7), pages 639-645.
    2. Ken-ichi Suzuki & Jun-ichi Itaya & Akitomo Yamanashi & Tatsuyoshi Miyakoshi, 2018. "Existence, Uniqueness, and Algorithm for Identifying Free Riders in Multiple Public Good Games: Replacement Function Approach," CESifo Working Paper Series 7062, CESifo.
    3. Wolfgang Buchholz & Richard Cornes & Dirk T. G. Rübbelke, 2009. "Existence and Warr Neutrality for Matching Equilibria in a Public Good Economy: An Aggregative Game Approach," CESifo Working Paper Series 2884, CESifo.

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    More about this item

    Keywords

    public goods; free riders; algorithm; no-free-rider Nash equilibrium;
    All these keywords.

    JEL classification:

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

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