Suppose a social entrepreneur needs to raise money for a public good.He has to allocate his fund raising package to activities that persuade people of the importance of the public good and to activities that make people feel good about giving.As the population gets large, which of these do you think he will increasingly emphasize?

Question

Quizplus · Accepted Answer

The Answer is As the population gets large, the free rider problem becomes larger -- which means that just convincing someone that the public good is important won't raise much money. But making someone feel good about giving is all about generating private benefits from giving -- and that is unaffected by how many individuals there are.Thus, one would expect the fund raising to increasingly focus on making people feel good about giving rather than persuading them of the importance of the public good.

Suppose a Social Entrepreneur Needs to Raise Money for a Public