Group size and free riding when private and public goods are gross substitutes
No 13/2000, Bonn Econ Discussion Papers from University of Bonn, Bonn Graduate School of Economics (BGSE)
Using the traditional model of voluntary public good provision, it is shown that an expansion of group size exacerbates free riding tendencies as long as private consumption and the public good are strictly normal and weak gross substitutes. This result generalizes a previous Cobb-Douglas example with respect to preferences and asymmetric equilibria.
Keywords: private provision of public goods; group size (search for similar items in EconPapers)
JEL-codes: H41 (search for similar items in EconPapers)
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