Application of a Microeconomic Approach for Explanation of Citizen Participation in Open Government

Abstract

The digital economy and the sharing economy have changed the role citizens may acquire in society. Citizens can perform at least two roles from the open government perspective: on the one hand, they can be passive users/demanders of information and, on the other hand, they can provide or produce the information in an active manner. The objective of this paper is to offer a theoretical model to explain citizens’ incentives to participate in open government projects. Which is the opportunity cost of participation for the citizen? Which are the drivers of the preferences for the social good? This model is based on the utility function and consumption theory. We complement the theoretical framework with an exploratory–descriptive analysis based on a case study’s primary data about citizen participation. In democracy projects where citizens actively collaborate and could earn monetary gains or become entrepreneurs, the opportunity cost of participation is lower than in a passive type and the amount of the social good depends on the preferences. Preferences for social goods are related to community experiences and e-government and they also affect the decision to participate. Very few studies in the field of open government have pretended to explain citizens’ participation by using microeconomic foundations.

Keywords

• citizen participation
• utility function
• social goods
• sharing economy prosumer