Article Abstract:
Constitutional choice determines public from private goods, contrary to the conventional definition of public goods which identifies a class of goods which the market cannot provide. Utility interdependence in consumption is the basis of individuals in choosing what good should be provided publicly at the constitutional level. While a constitutional theory of public goods provides a stronger rationale than the conventional market failure theory, it has some policy implications: there should be a strong definition of public powers and institutional designs should be made more carefully.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Experimental research on the voluntary provision of public goods show that participants allocate some of their resources to these goods when the full-information noncooperative equilibrium is zero provision of the public good. It is investigated whether the difference in empirical findings and the Nash prediction is due to lack of anonymity.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
According to experiments, when contributions to global goods has a higher per capita return, people contribute more to the global good and the same amount to a group good.
User Contributions:
Comment about this article or add new information about this topic: