New research reveals how lobby groups impact public goods provision.
The article discusses how people decide to join groups to contribute to public goods and influence government decisions. The study uses a specific type of equilibrium to show that the outcomes are like a concept called the free-riding-proof core. This core is always there but may not be the most efficient. The group formed for lobbying may not be the ones willing to pay the most, and the level of public goods provided can decrease as the economy grows.