Public Goods Provision Fuels Social Divide, Favors Elites
The article explores how people's desire for social status influences their support for public provision of goods they can already buy privately. Richer individuals may vote for more public provision to make their private purchases seem more exclusive. This can lead to a situation where only a minority of people use publicly provided goods, but they might receive better quality than those using the private system. The study identifies the coalitions that can succeed in a political equilibrium.