Cooperation and competition in public welfare policies

Present public welfare policies and various proposals for reforming them do not often exploit the advantages of cooperation between otherwise competing altruists. The article examines this principle from a number of perspectives. It shows first how the advantages of the existing cooperative payments structure could be lost in some widely-publicized welfare reform proposals, and it makes a suggestion for retaining these advantages. The article next shows how the same principle could be used to improve existing incentives for private giving. Finally, it uses the same logic to rationalize newly evolving notions of sharing responsibility between governments and the recipients themselves.