Group Size and Heterogeneity in the Private Provision of Public Goods

Abstract

The traditional approach to voluntary provision of pure public goods typically models the factors of group heterogeneity and group size in a piecemeal fashion and fails to explain salient empirical observations. Integrating, both factors into a single model, we examine how they interact with each other to determine the structure of Nash equilibrium, and show that this model is indeed useful in making realistic predictions.