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Contributing with private bundles to public goods

Author

Listed:
  • Marta Faias

    (Universidade Nova de Lisboa)

  • Mercedes Guevara-Velázquez

    (Universidad de Salamanca)

  • Emma Moreno-García

    (Universidad de Salamanca)

Abstract

We extend to multiple private commodities the seminal model by Bergstrom et al. (J Public Econ 29:25–49, 1986) on the private provision of public goods. Considering the relative value of the aggregate donations, we define a notion of equilibrium and show its existence. We analyze the effects of resource redistributions on the equilibrium outcome, identifying conditions that guarantee neutrality. We study some further properties of the contribution equilibrium, and provide a strategic market game approach, defining a sequence of non-cooperative games whose equilibria converge to an equilibrium of the economy.

Suggested Citation

  • Marta Faias & Mercedes Guevara-Velázquez & Emma Moreno-García, 2024. "Contributing with private bundles to public goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 77(3), pages 801-821, May.
    • Handle: RePEc:spr:joecth:v:77:y:2024:i:3:d:10.1007_s00199-023-01511-2
    DOI: 10.1007/s00199-023-01511-2
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    More about this item

    Keywords

    Public goods; Private provision; Voluntary contributions;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • H00 - Public Economics - - General - - - General

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