Contributing or Free-Riding? Voluntary Participation in a Public Good Economy
Taiji Furusawa () and
Hideo Konishi ()
Global COE Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University
We consider a (pure) public goods provision problem with voluntary participation in a quasi-linear economy. We propose a new hybrid solution concept, the free-riding-proof core (FRP-Core), which endogenously determines a contribution group, public good provision level, and its cost-sharing. The FRP-Core is always nonempty in public good economies but does not usually achieve global efficiency. The FRP-Core has support from both cooperative and noncooperative games. In particular, it is equivalent to the set of perfectly coalition-proof Nash equilibrium (Bernheim, Peleg, and Whinston, 1987) of a dynamic game with players' participation decisions followed by a common agency game of public goods provision. We illustrate various properties of the FRPCore with an example. We also show that the equilibrium level of public good shrinks to zero as the economy is replicated.
Keywords: endogenous coalition formation; externalities; public good; perfectly coalition-proof Nash equilibrium; free-riders; free-riding-proof core; lobbying; common agency game (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gth, nep-pbe, nep-pol and nep-pub
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Journal Article: Contributing or free-riding? Voluntary participation in a public good economy (2011)
Working Paper: Contributing or Free-Riding? Voluntary Participation in a Public Good Economy (2011)
Working Paper: Contributing or Free-Riding? Voluntary Participation in a Public Good Economy (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hst:ghsdps:gd09-128
Access Statistics for this paper
More papers in Global COE Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Tatsuji Makino ().