IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03947724.html
   My bibliography  Save this paper

Positional and conformist effects in public good provision. Strategic interaction and inertia

Author

Listed:
  • Francisco Cabo

    (UVa - Universidad de Valladolid [Valladolid])

  • Alain Jean-Marie

    (NEO - Network Engineering and Operations - CRISAM - Inria Sophia Antipolis - Méditerranée - Inria - Institut National de Recherche en Informatique et en Automatique)

  • Mabel Tidball

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

Abstract

Consumption satisfaction depends on other factors apart from the inherent characteristic of commodities. Leibenstein (1950) studies how the consumer's demand reacts to other factors different from the inherent characteristic of a specific commodity. In particular, he highlights the desire of some consumers to be "in style", and the attempt by other for exclusiveness. The desire of some people to conform with the others, to be fashionable or stylish provokes a "bandwagon effect": the demand for a commodity increases due to the fact that others are consuming this same commodity. Conversely, the desire of some other people to be exclusive, or different from the "common hence" provokes the "snob" effect: the demand for a commodity decreases due to the fact that others are consuming it. This paper analyzes positional concerns and conformism in a model of private contributions to public good. A positional consumer gets joy when his/her relative contribution to the public good is higher than the average contribution by others. A conformist consumers feels better if his behavior fits the average behavior in society, i.e., near the average contribution by others. The well-being of a conformist consumer decreases both when his contribution is above or below the average contribution by others. We analyze how positional preferences and conformism for voluntary contributions to a public good favor players' contributions and under which conditions can lead to social welfare improvements. A two-player public good game between a positional and a conformist is analyzed, first in a one-shot game and later in a simple dynamic game with inertia, placing particular attention to the transition path. Homogeneous and non-homogeneous individuals are considered regarding the players' valuation of the public good.

Suggested Citation

  • Francisco Cabo & Alain Jean-Marie & Mabel Tidball, 2022. "Positional and conformist effects in public good provision. Strategic interaction and inertia," Post-Print hal-03947724, HAL.
    • Handle: RePEc:hal:journl:hal-03947724
    Note: View the original document on HAL open archive server: https://inria.hal.science/hal-03947724v1
    as

    Download full text from publisher

    File URL: https://inria.hal.science/hal-03947724v1/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Huihui Ding, 2017. "Conformity Preferences and Information Gathering Effort in Collective Decision Making," 2017 Papers pdi498, Job Market Papers.
    2. Ellingsen, Tore & Johannesson, Magnus, 2011. "Conspicuous generosity," Journal of Public Economics, Elsevier, vol. 95(9), pages 1131-1143.
    3. Wendner, Ronald & Goulder, Lawrence H., 2008. "Status effects, public goods provision, and excess burden," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 1968-1985, October.
    4. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
    5. Douadia Bougherara & Sandrine Costa & Gilles Grolleau & Lisette Ibanez, 2019. "Do positional preferences cause welfare gains?," Economics Bulletin, AccessEcon, vol. 39(2), pages 1228-1241.
    6. Corneo, Giacomo & Jeanne, Olivier, 1997. "Conspicuous consumption, snobbism and conformism," Journal of Public Economics, Elsevier, vol. 66(1), pages 55-71, October.
    7. Varian, Hal R., 1994. "Sequential contributions to public goods," Journal of Public Economics, Elsevier, vol. 53(2), pages 165-186, February.
    8. Laury, Susan K & Walker, James M & Williams, Arlington W, 1999. "The Voluntary Provision of a Pure Public Good with Diminishing Marginal Returns," Public Choice, Springer, vol. 99(1-2), pages 139-160, April.
    9. Douadia Bougherara & Sandrine Costa & Gilles Grolleau & Lisette Ibanez, 2019. "Do positional preferences cause welfare gains?," Post-Print hal-02154557, HAL.
    Full references (including those not matched with items on IDEAS)

    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. Thomas Aronsson & Olof Johansson-Stenman, 2014. "When Samuelson Met Veblen Abroad: National and Global Public Good Provision when Social Comparisons Matter," Economica, London School of Economics and Political Science, vol. 81(322), pages 224-243, April.
    2. Thomas Aronsson & Sugata Ghosh & Ronald Wendner, 2023. "Positional preferences and efficiency in a dynamic economy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(2), pages 311-337, August.
    3. Maccarrone, Giovanni & Marini, Marco A. & Tarola, Ornella, 2023. "Shop Until You Drop: the Unexpected Effects of Anticonsumerism and Environmentalism," FEEM Working Papers 330384, Fondazione Eni Enrico Mattei (FEEM).
    4. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Positional preferences in time and space: Optimal income taxation with dynamic social comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 101(C), pages 1-23.
    5. Steven J. Bosworth & Dennis J. Snower, 2024. "Technological advance, social fragmentation and welfare," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 62(2), pages 197-232, March.
    6. Aronsson, Thomas & Johansson-Stenman, Olof, 2009. "Conspicuous Leisure: Optimal Income Taxation when both Relative Consumption and Relative Leisure Matter," Umeå Economic Studies 774, Umeå University, Department of Economics.
    7. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Paternalism against Veblen: Optimal Taxation and Non-Respected Preferences for Social Comparisons," Working Papers in Economics 606, University of Gothenburg, Department of Economics.
    8. Gächter, Simon & Gerhards, Leonie & Nosenzo, Daniele, 2017. "The importance of peers for compliance with norms of fair sharing," European Economic Review, Elsevier, vol. 97(C), pages 72-86.
    9. Thomas Aronsson & Olof Johansson-Stenman, 2013. "Veblen’s theory of the leisure class revisited: implications for optimal income taxation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(3), pages 551-578, September.
    10. Paul Eckerstorfer, 2014. "Relative Consumption Concerns and the Optimal Tax Mix," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(6), pages 936-958, December.
    11. Francisco Cabo & Alain Jean-Marie & Mabel Tidball, 2022. "Positional effects in public good provision. Strategic interaction and inertia," Post-Print hal-03947632, HAL.
    12. Bracht, Juergen & Figuieres, Charles & Ratto, Marisa, 2008. "Relative performance of two simple incentive mechanisms in a public goods experiment," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 54-90, February.
    13. Aronsson, Thomas & Johansson-Stenman, Olof, 2015. "Keeping up with the Joneses, the Smiths and the Tanakas: On international tax coordination and social comparisons," Journal of Public Economics, Elsevier, vol. 131(C), pages 71-86.
    14. Aronsson, Thomas & Johansson-Stenman, Olof, 2014. "Genuine Saving and Conspicuous Consumption," Working Papers in Economics 605, University of Gothenburg, Department of Economics.
    15. Feine, Gregor & Groh, Elke D. & von Loessl, Victor & Wetzel, Heike, 2023. "The double dividend of social information in charitable giving: Evidence from a framed field experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 103(C).
    16. Thomas Aronsson & Olof Johansson‐Stenman, 2010. "Positional Concerns In An Olg Model: Optimal Labor And Capital Income Taxation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1071-1095, November.
    17. repec:dau:papers:123456789/4809 is not listed on IDEAS
    18. Juergen, Bracht, 2010. "Contracting in the trust game," MPRA Paper 24136, University Library of Munich, Germany.
    19. Thomas Aronsson & Olof Johansson‐Stenman, 2013. "Conspicuous Leisure: Optimal Income Taxation When Both Relative Consumption and Relative Leisure Matter," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 155-175, January.
    20. Aronsson, Thomas & Johansson-Stenman, Olof, 2008. "Positional Concerns with Multiple Reference Points: Optimal Income Taxation and Public Goods in an OLG Model," Working Papers in Economics 304, University of Gothenburg, Department of Economics.
    21. Aronsson, Thomas, 2007. "When the Joneses’ Consumption Hurts: Optimal Income Taxation and Public Good Provision in an OLG Model," Umeå Economic Studies 711, Umeå University, Department of Economics.

    More about this item

    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:hal:journl:hal-03947724. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.