Abstract
This paper develops an approach to understanding voluntary collective action. A simple model illustrating this approach predicts Pareto optimal provision of a nonexcludable public good in the case of identical actors with perfect information, regardless of the number of actors. In this approach, actors voluntarily subsidize each other's contributions to the provision of a public good. Each actor individually finds it optimal to match other actors' contributions dollar for dollar, and this matching behavior leads to a Pareto optimal
Original language | English |
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Pages (from-to) | 251-255 |
Number of pages | 5 |
Journal | American Economic Review |
Volume | 68 |
Issue number | 2 |
State | Published - 1978 |
Externally published | Yes |