Altruism and charitable giving in a fully replicated economy

Thomas Gaube ()
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Thomas Gaube: Max Planck Institute for Research on Collective Goods, Bonn, Germany

No 2005_8, Discussion Paper Series of the Max Planck Institute for Research on Collective Goods from Max Planck Institute for Research on Collective Goods

Abstract: In this paper, an economy is analyzed where one group of agents, the altruists, cares about the well-being of another group of agents, the recipients. It is asked how changes in the size of these groups affect the altruists’ charitable giving in the Nash equilibrium. I show that a pure group size effect, i.e., a proportional expansion of both subgroups can lead to less free riding and to a lower degree of underprovision relative to the efficient level of charitable giving.

Keywords: altruism; public goods; group size; charitable giving (search for similar items in EconPapers)
JEL-codes: D64 H41 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2005-04
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Citations: View citations in EconPapers (1)

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