Arbeitspapier
Public-good valuations and intrafamily allocation
I derive the marginal value of a public good in multiperson households, measured alternatively by one household member’s willingness to pay (WTP) for the good on behalf of the household, or by the sum of individual WTP values across family members. Households are assumed to allocate their resources using efficient Nash bargains over two goods, one private good for each member, and one common household good. We show that with no altruism among two family members, member 1’s WTP on behalf of the household is on average a correct representation of true aggregate household WTP for the public good, and is higher (lower) than this average when member 1 has a higher (lower) marginal value of the public good than member 2. Nonpaternalistic altruism makes each of the two members’ WTP on behalf of the household closer to the true aggregate WTP. With paternalistic altruism, attached to consumption of the public good, higher altruism raises aggregate WTP. Higher altruism on the part of both members then moves individual-based WTP closer to true aggregate WTP, while the opposite may occur when only one member is altruistic.
- Language
-
Englisch
- Bibliographic citation
-
Series: Memorandum ; No. 2002,28
- Classification
-
Wirtschaft
Household Production and Intrahousehold Allocation
Altruism; Philanthropy; Intergenerational Transfers
Public Goods
Recreational Aspects of Natural Resources
- Subject
-
Public goods
willingness to pay
contingent valuation
intrafamily allocation
Willingness to pay
Öffentliches Gut
Familie
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Strand, Jon
- Event
-
Veröffentlichung
- (who)
-
University of Oslo, Department of Economics
- (where)
-
Oslo
- (when)
-
2002
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Strand, Jon
- University of Oslo, Department of Economics
Time of origin
- 2002
Other Objects (12)
Public-good valuation and intrafamily allocation
The Euro is good after all: Evidence from corporate valuations
Good governance and good aid allocation
The Team Allocator Game: Allocation Power in Public Goods Games
The team allocator game: Allocation power in public goods games
Narratives and Valuations
Diversity and public goods: A natural experiment with exogenous residential allocation
Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem'
The Allocation of Public Goods with Sealed-Bid Auctions: Some Preliminary Evaluations
An Incentive Mechanism for Efficient Resource Allocation in General Equilibrium with Public Goods
The minimum approval mechanism implements the efficient public good allocation theoretically and experimentally
Market Design with Correlated Valuations
Public-good valuation and intrafamily allocation
The Euro is good after all: Evidence from corporate valuations
Good governance and good aid allocation
The Team Allocator Game: Allocation Power in Public Goods Games
The team allocator game: Allocation power in public goods games
Narratives and Valuations
Diversity and public goods: A natural experiment with exogenous residential allocation
Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem'
The Allocation of Public Goods with Sealed-Bid Auctions: Some Preliminary Evaluations
An Incentive Mechanism for Efficient Resource Allocation in General Equilibrium with Public Goods
The minimum approval mechanism implements the efficient public good allocation theoretically and experimentally
Market Design with Correlated Valuations
Public-good valuation and intrafamily allocation
The Euro is good after all: Evidence from corporate valuations
Good governance and good aid allocation
The Team Allocator Game: Allocation Power in Public Goods Games
The team allocator game: Allocation power in public goods games
Narratives and Valuations
Diversity and public goods: A natural experiment with exogenous residential allocation
Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem'
The Allocation of Public Goods with Sealed-Bid Auctions: Some Preliminary Evaluations
An Incentive Mechanism for Efficient Resource Allocation in General Equilibrium with Public Goods
The minimum approval mechanism implements the efficient public good allocation theoretically and experimentally