Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77749
Authors: 
Silvestre, Joaquim
Year of Publication: 
2012
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Publisher:] Springer [Place:] Heidelberg [Volume:] 3 [Year:] 2012 [Issue:] 1/2 [Pages:] 201-207
Abstract: 
Quasilinear preferences on a public good and a numeraire good are limits of preferences where both goods are normal. The set of equilibria of the voluntary contribution (or private provision) game is easily characterized under quasilinearity by: top valuators aggregately contribute their common stand-alone contribution, whereas non-top valuators contribute nothing. Because, as long as preferences are randomly selected, there will typically be a single top valuator, it follows that, typically, the equilibrium is unique, with all players but one contributing nothing, hence free riding in the sense of the ordinary English usage of the expression. The upper-hemicontinuity of the Nash equilibrium correspondence implies that this is also the case when both goods are strictly normal, but the wealth effects on the public good are small.
Subjects: 
free riding
public goods
voluntary contributions
private provision
normal goods
quasilinear preferences
wealth effects
JEL: 
H41
C72
D70
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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