Taxpayers, Suckers and Free Riders
Anthony de Jasay
Journal of Theoretical Politics, 1993, vol. 5, issue 1, 117-125
Abstract:
In the traditional theory, resources for providing public goods will not be contributed voluntarily. The state's role is to exert mutually agreed coercion and organize Pareto-superior exchanges of public goods against taxes. `Government failures' spoil the attractions of this solution. In a more general theory, `excludability' is replaced by exclusion cost, and `joint supply' by access not subject to price or non-price allocation. The probability that one's benefit is contingent on one's contribution becomes a significant variable. Rational non- altruists will not generally have a dominant strategy of non-contribution. They may choose the `sucker' or the `free rider' strategy, depending on their assessment of the risk of having no or too few public goods.
Keywords: benefit contingent on contribution; continuous and discrete public goods; exclusion cost; free rider; joint supply; non-excluded public; sucker (search for similar items in EconPapers)
Date: 1993
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jothpo:v:5:y:1993:i:1:p:117-125
DOI: 10.1177/0951692893005001006
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