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On Equal Cost Sharing in the Provision of an Excludable Public Good

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  • Jordi Massó

    ()
    (Departamento d’e Economía e Historia Económica, Universidad Autònoma de Barcelona y Barcelona GSE)

  • Antonio Nicoloó

    ()
    (Dipartimento di Scienze Economiche. Università degli Studi di Padova.)

  • Tridib Sharma

    ()
    (Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM))

  • Levent Ülkü

    ()
    (Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM))

Abstract

We study the effciency and fairness properties of the equal cost sharing mechanism in the provision of a binary and excludable public good. According to the maximal welfare loss criterion, equal cost sharing is optimal within the class of strategyproof, individually rational and no-budgetde cit mechanisms only when there are 2 agents. In general the equal cost

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Bibliographic Info

Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 1306.

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Length: 33 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:cie:wpaper:1306

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Keywords: Excludable public good; Equal cost sharing; Maximal welfare loss;

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  1. Sprumont, Yves, 2013. "Constrained-optimal strategy-proof assignment: Beyond the Groves mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 1102-1121.
  2. Deb, Rajat & Razzolini, Laura, 1999. "Voluntary cost sharing for an excludable public project," Mathematical Social Sciences, Elsevier, vol. 37(2), pages 123-138, March.
  3. Ohseto, Shinji, 2000. "Characterizations of Strategy-Proof Mechanisms for Excludable versus Nonexcludable Public Projects," Games and Economic Behavior, Elsevier, vol. 32(1), pages 51-66, July.
  4. Yan Yu, 2007. "Serial cost sharing of an excludable public good available in multiple units," Social Choice and Welfare, Springer, vol. 29(3), pages 539-555, October.
  5. Hervé Moulin, 2008. "The price of anarchy of serial, average and incremental cost sharing," Economic Theory, Springer, vol. 36(3), pages 379-405, September.
  6. Sprumont, Yves, 1990. "Population monotonic allocation schemes for cooperative games with transferable utility," Games and Economic Behavior, Elsevier, vol. 2(4), pages 378-394, December.
  7. Shinji Ohseto, 2005. "Augmented serial rules for an excludable public good," Economic Theory, Springer, vol. 26(3), pages 589-606, October.
  8. Olszewski, Wojciech, 2004. "Coalition strategy-proof mechanisms for provision of excludable public goods," Games and Economic Behavior, Elsevier, vol. 46(1), pages 88-114, January.
  9. Mutuswami, Suresh, 2005. "Strategyproofness, Non-Bossiness and Group Strategyproofness in a cost sharing model," Economics Letters, Elsevier, vol. 89(1), pages 83-88, October.
  10. Deb, Rajat & Razzolini, Laura, 1999. "Auction-Like Mechanisms for Pricing Excludable Public Goods," Journal of Economic Theory, Elsevier, vol. 88(2), pages 340-368, October.
  11. Ruben Juarez, 2008. "The worst absolute surplus loss in the problem of commons: random priority versus average cost," Economic Theory, Springer, vol. 34(1), pages 69-84, January.
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