Working Paper 09/211 - abstract

Reputation and Ownership of Public Goods (PDF, 485kB)

Maija Halonen-Akatwijuka and Evagelos Pafilis

This paper analyzes the effect of reputation on ownership of public goods in the Besley and Ghatak (2001) model. We show that in the dynamic setup the optimal ownership depends not only on the relative valuations for the public good but also on technology (elasticity of investment). We also show that joint ownership of public good can be optimal in both the static and repeated game but it emerges for a different parameter range. Our results are applied to the case of return of cultural goods to their country of origin.

Supplementary Appendix (PDF, 69kB)