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A Core-Equilibrium Convergence in a Public Goods Economy

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  • NIZAR ALLOUCH

Abstract

This paper shows a core-equilibrium convergence in a public goods economy where consumers' preferences display warm glow effects. We demonstrate that if each consumer becomes satiated to other consumers' provision, then as the economy grows large the core shrinks to the set of Edgeworth allocations. Moreover, we show that an Edgeworth allocation can be decentralized as a warm glow equilibrium. Copyright � 2010 Wiley Periodicals, Inc..

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9779.2010.01477.x
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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 12 (2010)
Issue (Month): 4 (08)
Pages: 857-870

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Handle: RePEc:bla:jpbect:v:12:y:2010:i:4:p:857-870

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