Private provision of public goods can be efficient

Economists have long believed that private provision of public goods will be inefficient, though recently some have argued that altruism may mitigate the inefficiencies. Without altruism, agents contribute to the point where marginal cost equals their private marginal benefits. With altruism, they contribute more and hence are closer to the point where marginal cost and total marginal benefits are equated. In an earlier paper (Bagnoli and Lipman, 1989), we showed that private provision need not be inefficient. In a very natural model of private provision without altruism, we showed that the set of (undominated perfect) equilibrium outcomes is identical to the core. Here we consider the effect of altruism on private provision. Altruism essentially creates more public goods because the well-being of others becomes a public good. We show that our model of private provision still has efficient equilibria under a wide variety of circumstances. Interestingly, the equilibria may be inefficient when agents are concerned about the effect of private provision on the distribution of wealth. Intuitively, the game we consider is a very powerful instrument for efficient private provision, but must be supported by other instruments if the set of public goods is expanded too far.We wish to thank Jim Andreoni, Ted Bergstrom, and an anonymous referee for helpful comments and to acknowledge financial support from the National Science Foundation through NSF Grant SES-8520296. Of course, any remaining errors are our responsibility.     

A Primary Industry Perspective

This article develops a case for taking a broad perspective on the benefits generated from government involvement in international services. In particular it shows how government scientists and other officers, through involvement in exporting government services, can gain and maintain important scientific knowledge, and access genetic material from overseas. These activities may be vital for the establishment of new industries, as well as maintaining production efficiency in the private sector.
The article further illustrates, through a case study, the unique role for government in assisting the private sector open up trade opportunities. In the case study example this was facilitated through sourcing overseas technology to treat mangos for fruit fly, and then after extensive testing and scientific work negotiating the removal of quarantine barriers to gain access to the lucrative Japanese market.     

Restructuring Local Government in Hampshire: A Case of Mistaken Community Identity?

This article examines the impact of the idea of community identity upon the Local Government Review in England. It considers the extent to which the notion of community identity was built into the Local Government Review nationally and, moreover, locally in Hampshire, and the extent to which it shaped the outcomes of the Local Government Review. Three conceptions of community identity are examined - affective, effective and deliberative community identity - and their interplay assessed in shaping the process of restructuring local government. The article argues that the issue of community identity figured prominently in the early stages of the Local Government Review, but faded away as it got caught up with the political machinations of central government, local authorities and political parties.     

The Hired Gun as Facilitator: Lawyers and the Suppression of Business Disputes in Silicon Valley

This article draws on interview data from California's Silicon Valley to explore the role of local business attorneys in shaping the market for high-technology start-up financing. Far from exerting a disruptive or disputatious influence on business relations, Silicon Valley lawyers actively facilitate the functioning of the region's venture capital sector. In particular, attorneys intervene in the start-up process to absorb, suppress, and avert crucial uncertainties that might otherwise elevate transaction costs, imperil economic activity, and foster interorganizational discord. Local law firms moderate the hazards of new-company financing in at least three distinct ways: (1) by directly absorbing economic uncertainties in individual transactions; (2) by constructing, preserving, and reproducing normative and cognitive understandings within the community as a whole; and (3) by incorporating these local practices into the external legal regime.     

Crime and safety-related concerns in a small community

This research utilizes social context and personal characteristics as determinants of both perceptions and satisfaction with safety in the local neighborhood. Using survey data obtained from residents of a small town, this analysis examines the impact of satisfaction with the environment, victimization, and social integration on attitudes concerning safety. Consistent with past research, results indicate that victimization and satisfaction with the local area are both significant predictors of perceptions of safety. They also share a significant relationship with satisfaction with safety. Two indicators of social integration yielded differing results. Participation in local organizations and associations played a more significant role in attitudes concerning safety than did the number of friends a respondent has in the neighborhood. When controlling for personal characteristics, participation in organizations was a more significant predictor of perceptions of safety than of satisfaction with safety. This project was funded by Midway College and a grant from the Association of American Colleges to the University of Louisville. An earlier version of this research was presented to the American Sociological Association. The authors would like to acknowledge the suggestions of Susan Bennett.