Advanced Search
MyIDEAS: Login to save this paper or follow this series

Reducing inefficiency in public good provision through linking

Contents:

Author Info

  • Stefano Galavotti

    ()
    (Dipartimento di Matematica per le Decisioni, Universita' degli Studi di Firenze)

Abstract

We derive the optimal mechanism for the provision of n identical public goods in an economy with two agents, binary valuations. The mechanism "links" the n problems together because decisions and transfers are based on the whole vector of valuations of the agents. In particular, if agents have mixed valuations for a public good (one agent has a high valuation, the other a low valuation), the good is provided if the low valuation agent has a sufficiently high average valuation for the whole bundle of goods. We show that the mechanism is asymptotically efficient and we provide an example which compares the gains in terms of efficiency with optimal separate provision and with another asymptotically efficient mechanism in the literature.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.disei.unifi.it/upload/sub/pubblicazioni/repec/flo/workingpapers/storicodimad/2010n/dimadwp2010-01.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa in its series Working Papers - Mathematical Economics with number 2010-01.

as in new window
Length: 29 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:flo:wpaper:2010-01

Contact details of provider:
Postal: Via delle Pandette 9 50127 - Firenze - Italy
Phone: +39 055 2759707
Fax: +39 055 2759913
Email:
Web page: http://www.disei.unifi.it/
More information through EDIRC

Related research

Keywords: public goods; linking; bundling.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:flo:wpaper:2010-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michele Gori).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.