Visits, Wealth Disparities In Spontaneous Cooperation Supply

The problem of public goods provision is due to the externalities of public goods. According to Rational Choice Theory, in the providing of public goods, individuals are inclined to be free-riders. Nevertheless, some communities successfully manage local resource systems, and there are many instances of co-operations between individuals. There are some explanations for this. Firstly, some researchers consider co-operation as error. That is individual co-operate only when they have made mistakes. Others think that individuals may be altruism. Individual's behavior is affected by many factors in collective actions. Individual heterogeneity is one of the important factors. It has many representations, and it is interacted with many other factors. The study on heterogeneity could be conduct through modeling and case studying or experimental analyzing. There seems to be no exact relationship between income heterogeneity and supply of public goods. But in the rough, both pure free-rider and pure supplier cannot explain the actual situation.In this article, we will discuss the effects of wealth inequality on public goods provision question under normal model. Main assumptions are as follows: Under certain wealth restrictions, individuals have two inputs. One is private inputs, the other is collection inputs. They are complementary in the production function. The production function is concave with decreasing returns.The main conclusions are follows: When in pure public goods conditions, the "Distribution Neutrality" are correct, but when in impure public goods conditions, the effect of inequality is bilateral. It can reduce efficiency in some conditions. Also it can achieve the Pareto-Dominate in some other conditions.