Private Financing of Public Goods by Means of 'Eco-Goods' Schemes: Social Entrepreneur and Not-For-Profit Enterprise

Abstract

"With a view to applying to the problem of collective action for the global commons, we analyze a three-stage game model where public goods are provided by the costly leadership of a social entrepreneur for undertaking 'eco-goods' scheme. We derive (i) the conclusion that the social entrepreneur can finance more for the collective action under not-for-profit constraint than without the constraint, and (ii) the conditions under which he prefers the not-for-profit constraint on a rational basis. The main results are applied to some social experiments on the natural common-pools of a public-goods nature in the river-basins communities of Japan."