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Lotteries, Group Size, and Public Good Provision
Author(s) -
PECORINO PAUL,
TEMIMI AKRAM
Publication year - 2007
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/j.1467-9779.2007.00314.x
Subject(s) - lottery , per capita , public good , economics , group (periodic table) , microeconomics , contrast (vision) , public economics , demographic economics , demography , computer science , sociology , population , chemistry , artificial intelligence , organic chemistry
We analyze the effect of group size on public good provision under the Morgan (2000) lottery mechanism. For a pure public good, the lottery performs quite well as public good provision is found to increase in group size, even when the lottery prize is held constant. By contrast, for fully rival public goods, per capita provision is found to decrease in group size, even when the lottery prize is proportional to group size. Further, the per capita level of provision will approach zero when group size is sufficiently large.