Abstract
For excludable public goods, we propose simple mechanisms to uniquely implement a (core) stable and efficient production and cost-sharing outcome: consumers are asked to announce sequentially their minimal requested level of public good and a subscription towards its production. In one mechanism the subscriptions depend on the order of moves. In a second mechanism, the subscriptions are order-independent and thus symmetric. The equilibrium outcomes induced by our mechanisms are immune to strategic deviations by coalitions. Journal of Economic Literature Classification Numbers: H41, C72, D78.
| Original language | English |
|---|---|
| Pages (from-to) | 72-94 |
| Number of pages | 23 |
| Journal | Journal of Economic Theory |
| Volume | 87 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jul 1999 |
Bibliographical note
Funding Information:* Financial support to the second author from the German Israeli Foundation is gratefully acknowledged. The authors thank an anonymous referee for helpful suggestions on an earlier version. Comments from Bhaskar Dutta and participants at the 1997 Econometric Society European Meetings in Toulouse are also appreciated. Responsibilities of any errors or omissions remain with the authors.