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Group size and free riding when private and public goods are gross substitutes

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  • Gaube, Thomas

Abstract

Using the traditional model of voluntary public good provision, it is shown that an expansion of group size exacerbates free riding tendencies as long as private consumption and the public good are strictly normal and weak gross substitutes. This result generalizes a previous Cobb-Douglas example with respect to preferences and asymmetric equilibria.

Suggested Citation

  • Gaube, Thomas, 2000. "Group size and free riding when private and public goods are gross substitutes," Bonn Econ Discussion Papers 13/2000, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:132000
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    References listed on IDEAS

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    1. Richard Cornes & Roger Hartley & Todd Sandler, 1999. "Equilibrium Existence and Uniqueness in Public Good Models: An Elementary Proof via Contraction," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(4), pages 499-509, October.
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    3. Lipford, Jody W, 1995. "Group Size and the Free-Rider Hypothesis: An Examination of New Evidence from Churches," Public Choice, Springer, vol. 83(3-4), pages 291-303, June.
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    5. Bergstrom, Ted C. & Blume, Larry & Varian, Hal, 1992. "Uniqueness of Nash equilibrium in private provision of public goods : An improved proof," Journal of Public Economics, Elsevier, vol. 49(3), pages 391-392, December.
    6. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, October.
    7. Fries, Timothy L & Golding, Edward & Romano, Richard E, 1991. "Private Provision of Public Goods and the Failure of the Neutrality Property in Large Finite Economies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 147-157, February.
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    Cited by:

    1. Donna Harris & Benedikt Herrmann & Andreas Kontoleon, 2009. "Two's Company, Three's a Group: The impact of group identity and group size on in-group favouritism," Environmental Economy and Policy Research Working Papers 41.2009, University of Cambridge, Department of Land Economics, revised 2009.
    2. Donna Harris & Benedikt Herrmann & Andreas Kontoleon, 2012. "When to Favour Your Own group? The Threats of Costly Punishments and In-group Favouritism," Economics Series Working Papers 628, University of Oxford, Department of Economics.

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    More about this item

    Keywords

    private provision of public goods; group size;

    JEL classification:

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

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