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

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.

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Year of publication:	1999-12
Authors:	Gaube, Thomas
Institutions:	University of Bonn, Germany
Subject:	private provision of public goods \| group size

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Extent:	application/pdf
Series:	Bonn Econ Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	7 pages long
Classification:	H41 - Public Goods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005032225