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Article Dans Une Revue Economics Bulletin Année : 2019

Do positional preferences cause welfare gains?

Résumé

We examine conditions for which positional preferences for voluntary contribution to a public good can be welfare enhancing in a one-shot public good game, where individuals may also enjoy a return from their contribution ranking. We show that positional preferences are welfare-increasing only under certain conditions. We find that when agents' positional preferences are homogeneous, they overinvest in the public good compared to equilibrium with no positional preferences, resulting in a zero-sum positional race with a higher public good provision. When agents have heterogeneous positional preferences, the overall impact on social welfare is positive when endowments are homogeneous.
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Dates et versions

halshs-02137164 , version 1 (22-05-2019)

Identifiants

  • HAL Id : halshs-02137164 , version 1
  • PRODINRA : 471671
  • WOS : 000504882300044

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Douadia Bougherara, Sandrine Costa-Migeon Costa, Gilles Grolleau, Lisette Ibanez. Do positional preferences cause welfare gains?. Economics Bulletin, 2019, 39 (2), pp.1228-1241. ⟨halshs-02137164⟩
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