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Private provision of public goods and information diffusion in social groups
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Scharf, Kimberley A. (2014) Private provision of public goods and information diffusion in social groups. International Economic Review, 55 (4). pp. 1019-1042. doi:10.1111/iere.12081 ISSN 0020-6598.
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Official URL: http://dx.doi.org/10.1111/iere.12081
Abstract
I describe a dynamic model of costly information sharing where private information affecting collective-value actions is transmitted by social proximity. Individuals make voluntary contributions toward the provision of a pure public good, and information transmission about quality of provision is a necessary condition for collective provision to take place in a stationary equilibrium. I show that unlike in the case of private goods, better informed individuals face positive incentives to incur a cost to share information with their neighbors and that these incentives are stronger and provision of the pure public good greater the smaller are individuals' social neighborhoods.
Item Type: | Journal Article | ||||||||
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Divisions: | Faculty of Social Sciences > Economics | ||||||||
Journal or Publication Title: | International Economic Review | ||||||||
Publisher: | Wiley-Blackwell Publishing, Inc. | ||||||||
ISSN: | 0020-6598 | ||||||||
Official Date: | November 2014 | ||||||||
Dates: |
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Volume: | 55 | ||||||||
Number: | 4 | ||||||||
Page Range: | pp. 1019-1042 | ||||||||
DOI: | 10.1111/iere.12081 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access |
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