There is a a huge information problem with charity.
Will Joe Shmoe give the money to charity or buy a car with it? If Joe
promises to ride a bike across the country, publicity will lead to
monitoring; thus, donors will feel confident that Joe will donote the money
to charity.
_________________________
John-Charles Bradbury, Ph.D.
Department of Economics
The University of the South
735 University Ave.
Sewanee, TN 37383 -1000
Phone: (931) 598-1721
Fax: (931) 598-1145
E-mail: [EMAIL PROTECTED]
http://bradbury.sewanee.edu
----- Original Message -----
From: "Robin Hanson" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Tuesday, September 10, 2002 8:55 AM
Subject: Re: Charity and Races as Complements


> Alex Tabarrok wrote:
> > > Races are public goods?!  How do I benefit if some other people run
> > > a race with each other?   Is this just due to some externality that
> > > healthy people produce in general?
> >
> >Recall that the definition of public goods is not a good that is good
> >for the public! :) The definition is in terms of non-rivalry and non-
> >excludability of which non-rivalry is the more critical component.  My
> >point was simply that the output produced by someone running a race is
> >non-rivalrous.  Thus, the charitable racer can collect donations from
> >any number of people for running the same race.
>
> People could organize a race, and solicit donations to support the race.
> People can also run some other charity, like for a cancer, and solicit
> donations to support that charity.  The question is why these two
> charities are so often combined.  Many people would not give
> money to someone soliciting for a race by itself, or for someone
> soliciting for a cancer charity by itself, but they do give money
> to someone soliciting for a cancer run.  Why the extra willingness to
> donate to this combined solicitation?
>
> Robin Hanson  [EMAIL PROTECTED]  http://hanson.gmu.edu
> Asst. Prof. Economics, George Mason University
> MSN 1D3, Carow Hall, Fairfax VA 22030-4444
> 703-993-2326  FAX: 703-993-2323
>
>


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