Information Advantage in a Public Good Economy with Multiplicative Structure of Utilities

This paper extends results on information advantage in Cournot oligopoly to a public good economy with uncertainty and private information where the state-dependent utilities have a multiplicative structure. We show that in a Bayesian-Nash equilibrium where consumers' contributions are positive in all states of nature, a consumer with superior information is rewarded with a higher ex ante expected utility. Our counter example shows that in the case where one consumer does not contribute, information disadvantage might emerge. Thus, the interiority assumption is essential to obtain our results.