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Competing for recognition through public good provision

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Consider a setting in which several groups of individuals with common interests ( clubs ) compete with each other for recognition by other individuals. Depending on the context, recognition may be expressed by these other individuals joining a club, or choosing one club to admire. Clubs compete by providing a public good. Some examples for applications of this model include: (i) Churches missionarizing to attract new members; (ii) Open-source software projects and Wikipedia; (iii) professors of an economics department competing to attract graduate students to their respective fields; (iv) artists and researchers aiming for recognition of their work by their peers and the public. Competition between clubs increases the public good provision level, and a sufficiently strong competition effect may even lead to overprovision.

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Mattias Polborn

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Adapt according to the presented license agreement and reference the original author.