Private provision of public goods under price uncertainty: a comment
We revise a result stating that there is a positive relationship between contributions and welfare in a public good provision game under price uncertainty (Gradstein et al. Soc Choice Welf 10(4):371–382, 1993). The authors state in Proposition 3 that welfare decreases when price uncertainty induces...
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| Veröffentlicht in: | Social choice and welfare 2024-08, Vol.63 (1), p.171-177 |
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| container_title | Social choice and welfare |
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| creator | Billette de Villemeur, Etienne Cea-Echenique, Sebastián Cuevas, Conrado |
| description | We revise a result stating that there is a positive relationship between contributions and welfare in a public good provision game under price uncertainty (Gradstein et al. Soc Choice Welf 10(4):371–382, 1993). The authors state in Proposition 3 that welfare decreases when price uncertainty induces a reduction in private contributions. By contrast, we show that, under certain conditions, a reduction in contributions can be associated with an improvement in consumer welfare. This result is important because public policy regarding the provision of public goods is often based on indicators such as citizen participation, which, as this note shows, may constitute a misleading signal. |
| doi_str_mv | 10.1007/s00355-024-01526-1 |
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| ispartof | Social choice and welfare, 2024-08, Vol.63 (1), p.171-177 |
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| source | Worldwide Political Science Abstracts; SpringerLink Journals - AutoHoldings |
| subjects | Citizen participation Economic Theory/Quantitative Economics/Mathematical Methods Economics Economics and Finance Game Theory Health care policy Humanities and Social Sciences International Political Economy Original Paper Prices Public Finance Public goods Public policy Social and Behav. Sciences Social Policy Uncertainty Welfare Welfare economics |
| title | Private provision of public goods under price uncertainty: a comment |
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