interpreted as the degree of warm glow. It follows that the total provision of the public good, G, is simply: and the total contributions to the public good from all other individuals is denoted as: Thus, the public good is the sum of the person's contribution along with the total contributions of all other individuals (1) where All individuals in this naïve economy face the same utility functions, given by: (2) where the utility functions represent the utility for private, egoistic consumption the utility derived from the public good and the warm-glow utility of the contribution towards the public good An altruist should derive no additional utility from the act of giving: whereas a pure egoist derives pleasure only from the warm glow of giving, without care for the public good itself, hence From the budget constraint and utility function, one can derive the utility maximization function, which is the original utility function (2) transformed using the definition of the public good (1). This utility maximization function serves as the foundation for warm-glow model development Implications Assuming a strategy of utility maximization, the model of warm glow offers many important economic predictions. Specifically, it presents three contrarian insights to those of classical economics under Ricardian equivalence. First, warm-glow theory predicts that income transfers will increase net giving only when income is transferred to more altruistic individuals. Second, it suggests that the provision of a public good is dependent upon the distribution of income within a population. Third, it suggests that public fund of public goods through lump-sum taxes will be more effective than relying upon altruism in the private sector. Individually and collectively, these propositions are in stark contrast to the laissez-faire doctrine of Ricardian economics. Following this original model, warm glow has conceptually evolved with new applications across disciplines to explain and encourage prosocial behavior. Background in psychology Many of the advances in warm glow research stem not from economics, but from psychology. In particular, research on motivations and affect have played a key role in defining and operationalizing warm glow for broad application. A motivational perspective "...a millionaire does not really care whether his money does good or not, provided he finds his conscience eased and his social status improved by giving it away..." -George Bernard Shaw. As illustrated in Shaw's quote, both intrinsic desires of conscience and extrinsic desires of social status may motivate giving. Warm glow