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Module 4
Lecture 17
Topics
4.13 Private vs. Public Good: Optimality Conditions
4.14 When is Private Provision Likely to Overcome the Free
Rider Problem?
4.15 Can Private Providers Overcome the Free Rider
Problem?
4.16 When is Private Provision Likely to Overcome the Free
Rider Problem?
4.17 Some Individuals Care More than Others
4.18 Altruism
4.19 Warm Glow
1
Indian Institute Of Technology, Kanpur
NPTEL-Economics-Public Economics
NPTEL-Economics-Public Economics
NPTEL-Economics-Public Economics
4.18 ALTRUISM
Another reason is that there is evidence that many individuals are altruistic,
caring about the outcomes of others as well as themselves.
Once again consider the experiment by Marwell and Ames 1981; a wide majority
did contribute to the group fund.
Some real-world evidence is consistent with altruism in private support of public
goods.
Brunner (1998) found that the number of public radio listeners who
contribute decreases only modestly as the total number of listeners
increases.
4
Indian Institute Of Technology, Kanpur