On the Private Provision of Contentious Public Characteristics
22 Pages Posted: 19 Jul 2012
Date Written: July 18, 2012
We extend the standard public good provision model to allow players to either like or dislike the public characteristic. Those who dislike it are able to take actions to reduce its level. We present conditions under which the existence of a unique non-cooperative equilibrium is retained, and analyze its normative and comparative static properties.
Keywords: public goods, public bads, aggregative games
JEL Classification: C720, H410
Suggested Citation: Suggested Citation