Image concerns and the political economy of publicly provided private goods

Abstract: Governments often provide their citizens with goods and services that are also supplied in markets: education, housing, nutritional assistance, etc. We analyze the political economy of the public provision of private goods when individuals care about their social image. We show that image concerns motivate richer individuals to vote for the public provision of goods they themselves buy in markets, the reason being that a higher provision level attracts more individuals to the public system, enhancing the social exclusivity of market purchases. In effect, majority voting may lead to a public provision that only a minority of citizens use. Users in the public system may enjoy better provision than users in the private system. We characterize the coalition structures across voters that can prevail in a political equilibrium

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource, 40 S.
Language
Englisch
Notes
Veröffentlichungsversion
begutachtet

Bibliographic citation
Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und Entscheidung, Abteilung Verhalten auf Märkten ; Bd. SP II 2016-214

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Mannheim
(who)
SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.
(when)
2016
Event
Veröffentlichung
(where)
Berlin
(who)
Wissenschaftszentrum Berlin für Sozialforschung gGmbH
(when)
2016
Creator
König, Tobias
Lausen, Tobias
Wagener, Andreas
Contributor
Wissenschaftszentrum Berlin für Sozialforschung gGmbH

URN
urn:nbn:de:101:1-2022020211214637842152
Rights
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
15.08.2025, 7:25 AM CEST

Data provider

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Associated

  • König, Tobias
  • Lausen, Tobias
  • Wagener, Andreas
  • Wissenschaftszentrum Berlin für Sozialforschung gGmbH
  • SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.

Time of origin

  • 2016

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