No. 436: Free Riding on Altruism and Group Size
May 1, 2001
It is shown that altruism does not affect the equilibrium provision of public goods although altruism takes the form of unconditional commitment to contribute. The reason is that altruistic contributions completely crowd out selfish contributions. That is, egoists free ride on altruism. It is also shown that public goods are less likely to be provided in larger groups.
J.E.L classification codes: D64, H41
Keywords:Free Riding, Public good, Altruism