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The provision point mechanism with refund bonuses

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  • Zubrickas, Robertas

Abstract

We introduce refund bonuses into the provision point mechanism. If a total contribution is less than the provision point, each contributor receives not only his contribution refunded but also a refund bonus the size of which is proportional to the contribution made. However, because of competition for refund bonuses the provision point is reached in equilibrium. Furthermore, the mechanism can uniquely implement the public good project with Lindahl prices. The mechanism also has other applications.

Suggested Citation

  • Zubrickas, Robertas, 2014. "The provision point mechanism with refund bonuses," Journal of Public Economics, Elsevier, vol. 120(C), pages 231-234.
    • Handle: RePEc:eee:pubeco:v:120:y:2014:i:c:p:231-234
    DOI: 10.1016/j.jpubeco.2014.10.006
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    Cited by:

    1. Cason, Timothy N. & Tabarrok, Alex & Zubrickas, Robertas, 2021. "Early refund bonuses increase successful crowdfunding," Games and Economic Behavior, Elsevier, vol. 129(C), pages 78-95.
    2. Mun, Se-il, 2019. "Joint provision of transportation infrastructure," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    3. Lattimer, Timothy R.B. & Zubrickas, Robertas, 2023. "Refund bonuses and revenue equivalence," Economics Letters, Elsevier, vol. 231(C).
    4. Haris Aziz & Sujit Gujar & Manisha Padala & Mashbat Suzuki & Jeremy Vollen, 2022. "Coordinating Monetary Contributions in Participatory Budgeting," Papers 2206.05966, arXiv.org, revised Feb 2023.
    5. Li, Zhi & Liu, Pengfei & Swallow, Stephen K., 2017. "Supporting Private Provision of Ecosystem Services through Contracts: Evidence from Lab and Field Experiments," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 266300, Agricultural and Applied Economics Association.
    6. Zhi Li & Dongsheng Chen & Pengfei Liu, 2023. "Assurance payments on the coordination of threshold public goods provision: An experimental investigation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(2), pages 407-436, April.
    7. Se-il Mun, 2016. "Joint Provision of International Transport Infrastructure," Discussion papers e-15-015, Graduate School of Economics , Kyoto University.
    8. Zhi Li & Pengfei Liu & Stephen K. Swallow, 2021. "Assurance Contracts to Support Multi-Unit Threshold Public Goods in Environmental Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 339-378, October.
    9. Molina, Renato & Costello, Christopher & Kaffine, Daniel, 2024. "Sharing and expanding the co-benefits of conservation," Ecological Economics, Elsevier, vol. 218(C).
    10. Cason, Timothy N. & Zubrickas, Robertas, 2017. "Enhancing fundraising with refund bonuses," Games and Economic Behavior, Elsevier, vol. 101(C), pages 218-233.
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    12. Robertas Zubrickas, 2020. "Contingent wage subsidy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(4), pages 1105-1119, August.
    13. Cason, Timothy N. & Zubrickas, Robertas, 2019. "Donation-based crowdfunding with refund bonuses," European Economic Review, Elsevier, vol. 119(C), pages 452-471.

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    More about this item

    Keywords

    Public goods; Provision point mechanism; Refund bonus; Distributional efficiency;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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