Existence, Uniqueness and Some Comparative Statics for Ratio- and Lindahl Equilibria: New Wine in Old Bottles
AbstractWe present a rigorous, yet elementary, demonstration of the existence of a unique Lindahl equilibrium under the assumptions that characterize the standard n-player public good model. Indeed, our approach, which exploits the aggregative structure of the public good model, lends itself to a transparent geometric representation. Moreover, it can handle the more general concept of the cost-share or ratio equilibrium. Finally, we indicate how it may be ex-ploited to facilitate comparative static analysis of Lindahl and cost share equilibria.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1802.
Date of creation: 2006
Date of revision:
public goods; Lindahl equilibrium; ratio equilibrium;
Other versions of this item:
- Wolfgang Buchholz & Richard Cornes & Wolfgang Peters, . "Existence, Uniqueness And Some Comparative Statics For Ratio- And Lindahl Equilibria: New Wine In Old Bottles," Discussion Papers 06/08, University of Nottingham, School of Economics.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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"Aggregative Public Goods Games,"
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- Mas-Colell, Andreu & Silvestre, Joaquim, 1989. "Cost share equilibria: A Lindahlian approach," Journal of Economic Theory, Elsevier, vol. 47(2), pages 239-256, April.
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