Public Good Provision with a Distributor
17 Pages Posted: 24 Oct 2022
Date Written: October 20, 2022
Abstract
We present a model of public good provision with a distributor. Our main result describes a symmetric mixed-strategy equilibrium, where all agents contribute to a common fund with probability p and the distributor provides either a particular amount of public goods or nothing. A corollary of this finding is the efficient public good provision equilibrium where all agents contribute to the common fund, all agents are expected to contribute, and the distributor spends the entire common fund for the public good provision.
Keywords: Public goods, Embezzlement, Distributor
JEL Classification: D73, H40
Suggested Citation: Suggested Citation
Anwar, Chowdhury Mohammad Sakib and Matros, Alexander and SenGupta, Sonali, Public Good Provision with a Distributor (October 20, 2022). Queen’s Management School Working Paper 2022/08, Available at SSRN: https://ssrn.com/abstract=4256499 or http://dx.doi.org/10.2139/ssrn.4256499
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