Working Paper

On the Private Provision of Contentious Public Characteristics

Richard Cornes, Dirk Rübbelke
CESifo, Munich, 2012

CESifo Working Paper No. 3881

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 noncooperative equilibrium is retained, and analyze its normative and comparative static properties.

CESifo Category
Public Finance
Resources and Environment
Keywords: public goods, public bads, aggregative games
JEL Classification: C720, H410