Olson (1965) has argued that one way large groups overcome the free-rider problem is through by-product lobbying. The by-product firm sells a private good to potential members of the interest group and finances lobbying with its profits. It has been argued that by-product lobbying firms cannot...

Olson (1965) argues that some large groups can overcome the free-rider problem through by-product lobbying. The by-product firm sells a private good to potential members of the interest group and finances lobbying with its profits. Others argue that by-product lobbying firms cannot survive...

I develop a model in which the voluntary contributions mechanism for the provision of public goods totally breaks down in a large society. A by-product firm sells a private good and uses its profits to provide a public good. By-product firms compete with for-profit firms in a monopolistically...

In the standard model, provision of a pure public good is increasing in group size if it is a normal good. I develop a model of public good provision in which private goods are supplied in a monopolistically competitive market. In this context, increases in the size of the group are increases in...