EconPapers    
Economics at your fingertips  
 

A competitive equilibrium for a warm-glow economy

Nizar Allouch

Economic Theory, 2013, vol. 53, issue 1, 269-282

Abstract: The warm-glow model (Andreoni in J Political Econ 97:1447–1458, 1989 ; Econ J 100:464–477, 1990 ) of public goods provision has received widespread interest, yet surprisingly most attention has focused on the voluntary contribution equilibrium of the model, and only very little attention has been devoted to the competitive equilibrium. In this paper, we introduce the concept of competitive equilibrium for a warm-glow economy (henceforth, warm-glow equilibrium) and establish both existence and welfare properties. The warm-glow equilibrium concept may prove to be very useful to the normative and positive theory of public goods provision. First, it is a price-based mechanism achieving efficient outcomes. Second, not only could the warm-glow equilibria outcomes serve as a point of reference to measure free-riding and welfare loss but also, as suggested by Bernheim and Rangel (Behavioral Economics and Its Applications, 2007 ), in large economies they may be approximated by Walrasian equilibria outcomes. Copyright Springer-Verlag 2013

Keywords: Warm-glow; Public goods provision; Competitive equilibrium; Lindahl equilibrium; Asymptotic provision; H4; D6 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s00199-012-0689-z (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A Competitive Equilibrium for a Warm Glow Economy (2009) Downloads
Working Paper: A Competitive Equilibrium for a Warm Glow Economy (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:53:y:2013:i:1:p:269-282

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

DOI: 10.1007/s00199-012-0689-z

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-01-12
Handle: RePEc:spr:joecth:v:53:y:2013:i:1:p:269-282