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Private provision of public goods and information diffusion in social groups
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Scharf, Kimberly A. (2011) Private provision of public goods and information diffusion in social groups. Discussion Paper. Coventry: Centre for Economic Policy Research. CEPR Discussion Paper (No.8607). (Unpublished)
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Abstract
We describe a model of fundraising in social groups, where private information about quality of provision is transmitted by social proximity. Individuals engage in voluntary provision of a pure collective good that is consumed by both neighbors and non-neighbors. We 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. These incentives are stronger, and provision of the pure public good greater, the smaller are individuals’ social neighborhoods.
Item Type: | Working or Discussion Paper (Discussion Paper) | ||||
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Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Series Name: | CEPR Discussion Paper | ||||
Publisher: | Centre for Economic Policy Research | ||||
Place of Publication: | Coventry | ||||
Official Date: | September 2011 | ||||
Dates: |
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Number: | No.8607 | ||||
Institution: | University of Warwick | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Unpublished | ||||
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