Private Provision of Public Goods and Information Diffusion in Social Groups

Kimberley Scharf

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: We describe a model of fundraising in social groups, where private information about quality of provision is transmitted by social proximity. Individuals engage in voluntary provision of a pure collective good that is consumed by both neighbours and non-neighbours. We show that, unlike in the case of private goods, better informed individuals face positive incentives to incur a cost to share information with their neighbours. These incentives are stronger, and provision of the pure public good greater, the smaller are individuals’ social neighbourhoods.

Keywords: Private provision of public goods; social learning (search for similar items in EconPapers)
Date: 2011
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http://www2.warwick.ac.uk/fac/soc/economics/resear ... im_working_paper.pdf

Related works:
Journal Article: PRIVATE PROVISION OF PUBLIC GOODS AND INFORMATION DIFFUSION IN SOCIAL GROUPS (2014)
Working Paper: Private Provision of Public Goods and Information Diffusion in Social Groups (2013)
Working Paper: Private Provision of Public Goods and Information Diffusion in Social Groups (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:48

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