Cambridge Journal of Economics Advance Access published online on March 4, 2009
Cambridge Journal of Economics, doi:10.1093/cje/bep003
Private contributions to collective concerns: modelling donor behaviour
* University of Erlangen-Nuremberg and University of Erlangen-Nuremberg & CESifo Munich, respectively
Address for correspondence: Alexander von Kotzebue, University of Erlangen-Nuremberg, Department of Economics, Lange Gasse 20, D-90403 Nuremberg, Germany; email: alexander.kotzebue{at}wiso.uni-erlangen.de
The obvious discrepancy between the predictions of the standard model of private provision of public goods and empirical indications have led many economists to search for alternative explanations of the phenomenon of voluntary contributions. Whilst concentrating on models of donor motivation, the present paper gives a non-technical survey of a sample of these approaches, and discusses their advantages and limitations.
Key Words: Public goods Free-rider Warm glow Charity
JEL classifications: H0, D6
Manuscript received April 22, 2008; final version received September 25, 2008.