The Role of Cultural Capital on the Voluntary Contributions to Cultural Goods: A Differential Game Approach

This study aims to offer a formal analysis which relates provision of cultural goods the society’s level capital. Such is assumed already exist in society and increasable thanks individual support for goods. The achievement highest levels capital increases satisfaction coming from consumption, then voluntary contributions. Social approval, deriving donations, positively related existing triggers positive externality donators, thus increasing contributions generating whole society. dynamic provided this requires adoption differential game where individuals interact, making their choices on contribution level. We find that, under certain conditions, solution obtained Nash equilibrium with closed-loop strategies provides optimal that exceed Pareto efficient through open-loop strategies.