Monopolistic Competition and Public Good Provision with By‐Product Firms

19 Pages Posted: 15 Nov 2013

See all articles by Paul Pecorino

Paul Pecorino

University of Alabama - Department of Economics, Finance and Legal Studies

Multiple version iconThere are 2 versions of this paper

Date Written: Winter 2013

Abstract

I develop a model in which the voluntary contributions mechanism for the provision of public goods totally breaks down in a large society. A by‐product firm sells a private good and uses its profits to provide a public good. By‐product firms compete with for‐profit firms in a monopolistically competitive industry. If the number of by‐product firms is proportional to the size of the society, then public good provision rises without bound as the society grows large. This stands in strong contrast to the results under the voluntary contributions mechanism.

Suggested Citation

Pecorino, Paul, Monopolistic Competition and Public Good Provision with By‐Product Firms (Winter 2013). Journal of Economics & Management Strategy, Vol. 22, Issue 4, pp. 875-893, 2013, Available at SSRN: https://ssrn.com/abstract=2354749 or http://dx.doi.org/10.1111/jems.12036

Paul Pecorino (Contact Author)

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
205-348-0379 (Phone)
205-348-0590 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
169
PlumX Metrics