Abstract

The Scylla and Charybdis of institutions of cooperative enterprises are the potential for free riders, on the one hand, and the fact that some people may not value certain public goods. If we go to the one side, we encourage people who do value the public goods but whom cannot be excluded from enjoying them, to refuse to pay their share of the costs of providing them; if we go to the other side and force everyone to pay for them, we make people who do not value the public goods subsidize those who do and who perhaps have gained special control over the agenda of selecting which public goods are to be required.