Notes on income heterogeneity and number of contributors: Public goods model
This paper proves that a large degree of income heterogeneity increases the number of free riders under the noncooperative Nash equilibrium of voluntary contributions to public goods with a Cobb–Douglas utility function. We prove this by investigating an algorithm structure that identifies free ride...
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Veröffentlicht in: | Pacific economic review (Oxford, England) England), 2018-12, Vol.23 (5), p.732-741 |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Online-Zugang: | Volltext |
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Zusammenfassung: | This paper proves that a large degree of income heterogeneity increases the number of free riders under the noncooperative Nash equilibrium of voluntary contributions to public goods with a Cobb–Douglas utility function. We prove this by investigating an algorithm structure that identifies free riders. We also support this proof by showing the numerical simulation results based on this algorithm. |
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ISSN: | 1361-374X 1468-0106 |
DOI: | 10.1111/1468-0106.12272 |