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Rent-seeking for pure public goods

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In this paper we present a formal analysis of rent-seeking for public goods by two or more groups with different numbers of individuals. We begin by considering equally wealthy groups under risk neutrality, a case which constitutes our basic model. Several surprising and interesting results emerge from the analysis of this basic case. The problem is then extended to deal with (a) groups with different wealth levels, and (b) risk aversion. This last extension brings about a further crop of interesting and useful results.

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We should like to thank Eliezer Prisman of Bar Ilan University and Barry Smith of York University for their very helpful comments and suggestions on an earlier draft of this paper.

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Katz, E., Nitzan, S. & Rosenberg, J. Rent-seeking for pure public goods. Public Choice 65, 49–60 (1990).

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