Public good theories of the non-profit sector: Weisbrod revisited

Burton Weisbrod's 1975 article, Toward a theory of the voluntary non-profit sector in a three-sector economy, models non-profit organisations as suppliers of public goods which are undersupplied by government to heterogeneous populations. This article examines the implications, extensions and empirical tests of the Weisbrod theory. It also examines the theories of pure and impure altruism, the heterogeneity hypothesis, and the various ‘publicness’ indexes of non-profit output. The commonalities between the public good model and the trustworthiness model of non-profit organisations are also explored. He is also a Research Associate of the Mandel Center for Nonprofit Organizations at Case Western Reserve University.     

Negative reciprocity and its relation to anger-like emotions in identity-homogeneous and -heterogeneous groups

Several studies have shown that social identity fosters the provision of public goods and enhances the willingness to reciprocate the cooperative behavior of group members. Nonetheless, the question of how social identity affects negative reciprocity in identity-homogeneous and -heterogeneous groups has only received little attention. Consequently, we seek to fill this gap by examining whether social identity affects individuals’ willingness to sanction deviating group members in a public good context. Moreover, we devote particular attention to the role of anger-like emotions in negative reciprocity. To test our hypotheses, we employ one-shot public good games in a strategy method with punishment opportunity and induced social identity. Our results indicate that members of identity-homogeneous groups are prone to reveal less negative reciprocity than identity-heterogeneous groups when they face contributions smaller than their own. We also find that anger-like emotions much more strongly influence punishment behavior when individuals are matched with members of different identities than in identity-homogenous groups. These findings contribute to an increased understanding of the nature of social identity and its impact on reciprocity, improving economists’ ability to predict behavior while taking emotions into consideration.     

THE EFFECT OF REWARDS AND SANCTIONS IN PROVISION OF PUBLIC GOODS

A growing number of field and experimental studies focus on the institutional arrangements by which individuals are able to solve collective action problems. Important in this research is the role of reciprocity and institutions that facilitate cooperation via opportunities for monitoring, sanctioning, and rewarding others. Sanctions represent a cost to both the participant imposing the sanction and the individual receiving the sanction. Rewards represent a zero-sum transfer from participants giving to those receiving rewards. We contrast reward and sanction institutions in regard to their impact on cooperation and efficiency in the context of a public goods experiment . ( JEL C92)     

RACISM AS RENT SEEKING

Rules governing social and economic interactions among ethnic groups are modeled as public goods. The publicness of social rules can explain why race has been so consistently politicized. The potential gains from public provision attract political entrepreneurs into the field. In the absence of some constitutional restraints upon such rent seeking, race is bound to be politicized. In addition, the model can explain the existence of many government policies concerning race that are not apparently motivated by economic gain. Finally, government enforcement of ethnic economic cartels can explain some of the persistent differences in earnings across ethnic groups.     

Evolutionary Theory: The Missing Link for Conceptualizing Public Relations

This article introduces the concept of using Charles Darwin's (1859/1979 Darwin , C. ( 1979 / 1859 ). The origin of species. New York : Gramercy Books . [Google Scholar]) evolutionary theory as the metatheory for conceptualizing public relations thought. It examines the state of public relations theory development and explores theories that have been proposed as metatheories for the field, including systems theory, complexity theory, and symmetrical/Excellence theory. It also explores the tenets of evolutionary theory that have relevance for public relations theory, including social intelligence, Machiavellian intelligence, cheater detection, cooperation, reciprocity, and reciprocal altruism. It then makes the case for the role that evolutionary theory could play as a metatheory in the further development of public relations theory.     

Dimensions of corporate social responsibility (CSR) skepticism and their impacts on public evaluations toward CSR

This study attempts to examine the dimensions of corporate social responsibility (CSR) skepticism and to identify the strongest predictor by testing the relationships between the skepticism constructs and public responses. The study further examines the role of cynicism either as an antecedent, a moderator, or a component of CSR skepticism. Through a series of model tests, three factors of CSR skepticism were identified to better predict public responses to CSR: (a) skepticism toward a company’s altruism, (b) disbelief of CSR messages and CSR activities, and (c) skepticism toward CSR informativeness. Skepticism toward a company’s altruism was identified as the strongest predictor in determining negative public response to CSR, whereas cynicism did not have much predictive power to explain public response to CSR; as a result, it was excluded from the final dimensions of CSR skepticism.     

The gift in interaction: a study of 'picking-up the bill'

This paper analyses the phenomenon of 'picking up the bill', thereby contributing to a resurgence of sociological interest in gift exchange. Drawing on ethnomethodology, it describes and locates a distinctive theoretical approach. Utilizing video recordings, the analysis considers the interactional constitution of gifts and how gift exchange is locally invoked via the norm of reciprocity. Recurrent practices are described, through which gifts are brought into being, with reciprocity invoked, by benefactor and beneficiary alike, to manage social problems of acceptance, rather than to sanction insufficient contributions. The study describes the social character of what are perhaps the preeminent gifts exchanged in modern societies; where one person pays for another's consumption.     

Beyond empathy; Seasons of Affiliation,Intimacy and Power in Therapeutic Relationships

A therapeutic approach is proposed which accommodates attachment and feminist theories, and also recognises the essential place of narrative. Therapeutic relationships are conceptualised as occurring within a four-stage sequence which incorporates the trinity of motives: power, intimacy and affiliation. To help explain this process the metaphor of seasons is invoked.     

No externalities: a characterization of efficiency and incentive compatibility with public goods

We show that efficient anonymous incentive compatible (dominant strategy) mechanisms for public goods eliminate externalities, i.e., each individual is unable to change the welfare of anyone else. The characterization is used to derive existence and non-existence results for models with a finite number of individuals and to explain existence results in the continuum. A similar characterization and conclusions are demonstrated for private goods in (J Econ Theory 85:169–225, 1999). However, unlike private goods, elimination of externalities with public goods implies that individuals cannot change the outcome. Hence, such mechanisms provide only weak incentives for truth-telling.     

Economic analysis of volunteers’ motivations—A cross-country study

While some core theories on volunteer labor supply decisions can be found in the economic literature, little efforts were made so far to operationalize these models and verify their implications in an empirical context. This paper aims at narrowing the research gap between the theoretical economic literature on volunteer motivations and the empirically observed motivations for volunteer labor supply. A common indicator ‘voluntary contributions by others’ linking the theories of public goods, private consumption and investment has been identified and examined on the basis of structural equation modeling and regression analysis. Using representative micro data collected for volunteers in Bangladesh, Ghana, Poland and South Korea, the paper finds that this indicator significantly influences an individual's motivation. Particularly, observed findings are in accordance with theoretical predictions.     

On increased risk and the voluntary provision of public goods

This paper examines the impacts of increased risk on the voluntary provision of public goods. I strengthen the view that uncertainty ameliorates free riding even given negative non-Nash conjectures. This result holds since the change in the perceived free riding (i.e., the magnitude of the conjecture) drives voluntary contribution to public good supply. The result has two main implications. First, the traditional model of the rational self-interested individual can explain voluntary contributions. Second, a public policy to encourage volunteerism would maintain private information of private contributions to the supply of public goods. However, risk as a public policy instrument is limited by ethical concerns and behavioral responses to risk.U.S. Environmental Protection Agency provided support for this research. Garey Durden, Todd Sandler, Fred Sterbenz, Robert Sugden, and Joe Kerkvliet provided useful comments. I owe tanks to Peter Bohm, Hans Wijkander, and Charles Mason for encouraging my work in this area. Two referees provided detailed suggestions that greatly improved the paper.     

Do your duty—demand your right: a theoretical discussion of the norm of reciprocity in social work

This article presents a literature-based critique of the principle of reciprocity in welfare and social work. The norm of reciprocity is in principle an ethical, universal norm related to the whole scope of human interaction. In this article the scope has been delimited to social work and the implementation of a policy of workfare in Norway. Emphasis is given to exploring mechanisms that may explain important characteristics of implementation practices that are not always clearly visible. The discussion includes the dialectics between overarching institutional relationships such as the body of laws and existing policies, institutional practices and the practice of social workers. The norm of reciprocity is analysed as a generative mechanism that sometimes implies problematic aspects requiring critical examination and discussion. By viewing reciprocity as a generative mechanism and as a ‘starting mechanism’, problematic aspects of implementation practices may be better understood.     

The City Park as a Public Good Reference for Internet Policy Making

Extensive literature has provided evidence of the organic nature of the Internet as a domain for different sorts of activities. Most policy making regarding the Internet, however, has focused on its economic dimensions (e.g. e-commerce, copyrights, privacy) while taking timid steps when it comes to its cultural and social dimensions. We propose a more comprehensive approach for global policy making on the Internet by looking retrospectively at processes that led to the creation of urban parks, and examining those processes in light of public goods theory. We conducted historical and theoretical analyses to show that, in the same way urban parks define spaces that mediate between different functions of the city, it is possible to define buffer spaces within the Internet that mediate between competing spheres of activity. As a complex phenomenon involving infrastructure, applications, and content, the Internet possesses features that can be located at different points between purely private and purely public goods. This fact parallels the growing attention that public goods theorists are paying to non-economic factors to explain the provisions of goods under circumstances that do not easily fit supply/demand laws. We argue that urban parks, as hybrid public goods, offer a reference for the design of policies that harmonize competing interests because they are spaces justified by manifold rationales (economic, political, social and cultural). As parks offer possibilities for spontaneous re-appropriations of the city as a cohesive entity (i.e. something beyond a disconnected collection of populations), defining similar multi-purpose spaces on the Internet would facilitate coexistence of competing and complementary behaviours by allowing users to re-appropriate this technology as a comprehensive entity beyond a mere aggregation of transactions and interests.     

Social preferences for public intervention: An empirical investigation based on French data

In this paper we examine the support given by French households to public intervention aimed at reducing inequalities and improving the well-being of low-income classes. We first discuss to what extent the model of self-interest could be relied upon when one wants to take into account social norms to explain the individual demand for redistribution. We find that social beliefs play an important role in explaining individual attitudes towards public intervention. We also find that the support given to redistribution can increase or decrease depending on the interaction between reciprocity norms and beliefs regarding the causes of poverty.     

EXPERIMENTAL ANALYSIS OF RISK AND UNCERTAINTY IN PROVISIONING PRIVATE AND PUBLIC GOODS

This paper uses laboratory evidence from public goods games to examine how in payoff-equivalent situations, decision makers contribute toward private or public goods when they are exposed to different kinds of risks and uncertainties in the provision of these goods. We find that location matters with subjects moving away from the environmental uncertainty in favor of strategic uncertainty when that uncertainty is located on the private good. When the uncertainty relates to the public good, subjects face both kinds of uncertainties on the same good, leading to a significant drop in contributions. An opportunity to reduce uncertainty increases cooperation. ( JEL C90, D81, H41)     

Economic perspectives on public relations

This paper explores the relationship between economic theory and public relations, in order to explain how public relations management contributes to companies’ overall economic gains. It uses a “blend” of economic theories to explain the role and contribution of public relations from the economic point of view. The paper sees a link between the strategic management of public relations as a function, and portions of neoclassical theory, as well as to alternative economic approaches relating to investments and transaction costs.     

The role of beliefs,trust, and risk in contributions to a public good

This paper experimentally investigates if and how beliefs, trust, and risk attitudes are associated with cooperative behavior. By applying incentivized elicitation methods to measure these concepts, we find that beliefs about others’ cooperation and trust are positively correlated with cooperation in a public goods game. However, even though contributing to a public good resembles a situation of making decisions under strategic uncertainty, elicited risk preferences do not seem to explain cooperation in a systematic way.     

Why Do Social Work Students Engage in Lesbian and Gay Rights Activism?

This paper considers the contexts and motivations as to why some social work students engage in lesbian and gay rights activism. To explain electoral and protesting modes of activism, this study utilized variables from resource, mobilizing, and framing theories of political participation to explain activism related to gay and lesbian rights. After gathering data on 159 undergraduate social work majors, regressions suggest that economic resources failed to explain participation in gay and lesbian politics. Instead, the predictors of gay and lesbian activism more closely aligned with four key variables: educational attainment, communicating with full-fledged activists, having an ability to recognize heterosexism, and maintaining a commitment to social justice.     

On the behavioural relevance of optional and mandatory impure public goods

Impure public goods combine a private good with a public good. Often, impure public goods have a charitable or ethical dimension, giving ethically motivated consumers a convenient option to contribute to public goods through the marketplace (in addition to direct donations). Impure public goods could potentially promote ethical giving or alternatively hinder charitable behaviour. We implement an economics experiment with a between-subject design to test the behavioural relevance of impure public goods with only a token (i.e. small) contribution to a public good. Contributions to the public good are negatively affected by the presence of impure public goods with token contributions. We explore one mechanism to offset this negative impact by making the token impure public good mandatory. We observe higher average contributions and several positive impacts on charitable behaviour, which supports the claim that this mechanism can potentially offset the negative impact of impure public goods.