Private provision of price excludable public goods by rivals

John Heywood, Dongyang Li and Guangliang Ye

Journal of Economic Behavior & Organization, 2023, vol. 214, issue C, 291-307

Abstract: We uniquely study the private provision of price excludable public goods in a duopoly. Simultaneous price competition generates only a mixed strategy equilibrium. Price leadership generates a pure strategy equilibrium with the leader setting a lower price and serving most consumers. This leadership game is the endogenous timing choice and improves welfare relative to monopoly provision. We re-examine these results under production in advance. The leadership game no longer remains a unique timing choice but the profit under production in advance is strictly larger.

Keywords: Non-rivalrous consumption; Public goods; Duopoly; Production to order; Production in advance (search for similar items in EconPapers)
JEL-codes: D21 H41 L13 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:214:y:2023:i:c:p:291-307

DOI: 10.1016/j.jebo.2023.08.013

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