Private provision of public goods under price uncertainty

Mark Gradstein, Shmuel Nitzan, Steven Slutsky

Research output: Contribution to journalArticlepeer-review

10 Scopus citations


In this paper, price uncertainty is introduced into the model of voluntary provision of public goods. The analysis is carried out depending upon whether individuals make real or nominal contributions. We highlight the significant factors that determine the complex effects of changes in uncertainty on the level of provision, the level of welfare, and the gaps between equilibrium and optimal values of these variables. In particular, we show that in some situations it would be desirable to introduce artificial randomness in prices in order to alleviate the free rider problem and to increase welfare.

Original languageEnglish
Pages (from-to)371-382
Number of pages12
JournalSocial Choice and Welfare
Issue number4
StatePublished - 1 Oct 1993

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics


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