Public GoBs

GoBs are goods for which agents have non-monotonic preferences: more is beneficial only up to an ideal level, beyond which additional quantities become undesirable. We analyze public GoBs (non-excludable and non-rival) through a theoretical framework applicable to diverse contexts such as solar geoengineering, wildlife management, and defense spending of European countries. The private provision of public GoBs proves inefficient due to both free-rider and free-driver externalities. Contribution costs and heterogeneity in ideal levels determine equilibrium outcomes. Surprisingly, reducing contribution costs can decrease welfare when agents' preferences diverge significantly.