The free‐rider principle, the charity market and the economics of Mood

This article summarizes some recent developments in the economics of the charity market, presents some applications of the analyses and highlights areas which need interdisciplinary research. A brief summary of the fairly recent extension of economic analyses to non-private market institutions is presented, followed by an overview of economic analysis applied to the charity market, interspersed with examples of policy applications. The article concludes with a generalized application of economic analyses to the policy debates on the roles of the volunteer and commercial blood procurement systems in the United States.