Notes on income heterogeneity and number of contributors: Public goods model

Tatsuyoshi Miyakoshi and Kenichi Suzuki

Pacific Economic Review, 2018, vol. 23, issue 5, 732-741

Abstract: This paper proves that a large degree of income heterogeneity increases the number of free riders under the noncooperative Nash equilibrium of voluntary contributions to public goods with a Cobb–Douglas utility function. We prove this by investigating an algorithm structure that identifies free riders. We also support this proof by showing the numerical simulation results based on this algorithm.

Date: 2018
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https://doi.org/10.1111/1468-0106.12272

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