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THE EFFECTS OF UNCERTAINTY ON THE VOLUNTARY PRIVATE PROVISION OF IMPURE PUBLIC GOODS

ILTAE KIM

Department of Economics, Chonnam National University, Gwangju 500-757, Republic of Korea

https://doi.org/10.1142/S0217590809003161Cited by:1 (Source: Crossref)

Abstract

This paper examines the effects of uncertainty on an individual's own contribution to the provision of the collective good using an impure public good model. Two types of uncertainty analyzing free-riding behavior are evaluated: (i) uncertainty surrounding the contributions of others to the public characteristic and (ii) uncertainty surrounding the response of others to an individual's own contribution. We extend previous studies by examining both the compensated and uncompensated effects of increases in such risks on the provision of the collective good. We also establish the conditions that are sufficient to determine both compensated and the total, uncompensated effects of an increase in risk on the voluntary provision of the collective good.

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