Cabrales, Antonio and Lugo, Haydée (2011) An impure public good model with lotteries in large groups. [ Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 05, 2011, ] (Unpublished)
Creative Commons Attribution Non-commercial.
Official URL: http://eprints.ucm.es/12474/
We analyze the effect of a large group on an impure public goods model with lotteries. We show that as populations get large, and with selfish preferences, the level of contributions converges to the one given by voluntary contributions. With altruistic preferences (of the warm glow type), the contributions converge to a level strictly higher than those given by voluntary contributions, even though in general they do not yield first-best levels.
|Item Type:||Working Paper or Technical Report|
|Uncontrolled Keywords:||Lotteries, Public good, Warm glow, Eficiency|
|Subjects:||Social sciences > Economics > Finance|
Social sciences > Economics > Public economy
|JEL:||D64, H21, H41|
|Series Name:||Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE)|
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|Deposited On:||24 Mar 2011 15:07|
|Last Modified:||17 Jun 2016 11:31|
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