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Welfare optimal information structures in public good provision

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  • Christoph Schottmüller

Abstract

This paper studies welfare maximizing information structures in a public good setting. In large groups less information is provided. In the limit, no information is provided but the information is efficient as by the law of large numbers no information is needed to take the efficient decision. This implies that the free rider problem is most severe not for large but for intermediate group sizes.

Suggested Citation

  • Christoph Schottmüller, 2022. "Welfare optimal information structures in public good provision," Working Paper Series in Economics 104, University of Cologne, Department of Economics.
    • Handle: RePEc:kls:series:0104
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