Serial cost sharing of excludable public goods: general cost functions
AbstractA group of individuals meet to share the cost and determine output allocations of a partial-excludable public good. We demonstrate that, for general cost functions and preferences that satisfy the Spence-Mirlees sorting condition, the serial cost-sharing formula (Moulin, 1994) has remarkable incentive properties. First, a direct economic mechanism that uses the serial formula is coalition strategy-proof, envy-free and satisfies the stand-alone property. Second, the serial mechanism involves partial exclusion, which is important for the reduction of the free-rider problem.
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Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 12 (1998)
Issue (Month): 1 ()
Note: Received: June 10, 1996; revised version; February 11, 1997
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Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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- Peter Norman, 2004.
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- SPRUMONT, Yves & MANIQUET, François, 2006.
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Cahiers de recherche
06-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Maniquet, François & Sprumont, Yves, 2010. "Sharing the cost of a public good: An incentive-constrained axiomatic approach," Games and Economic Behavior, Elsevier, vol. 68(1), pages 275-302, January.
- MANIQUET, François & SPRUMONT, Yves, . "Sharing the cost of a public good: An incentive-constrained axiomatic approach," CORE Discussion Papers RP -2184, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- SPRUMONT, Yves & MANIQUET, François, 2006. "Sharing the Cost of a Public Good: an Incentive-Constrained Axiomatic Approach," Cahiers de recherche 2006-09, Universite de Montreal, Departement de sciences economiques.
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