Bargaining over public goods
AbstractIn a simple public good economy, we propose a natural bargaining procedure whose equilibria converge to Lindahl allocations as the cost of bargaining vanishes. The procedure splits the decision over the allocation in a decision about personalized prices and a decision about output levels for the public good. Since this procedure does not assume price-taking behavior, it provides a strategic foundation for the personalized taxes inherent to the Lindahl solution to the public goods problem.
Download InfoIf 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.
Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00289435.
Date of creation: Jun 2008
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00289435
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Public goods; bargaining; alternating offers.;
Other versions of this item:
- DAVILA, Julio & EECKHOUT, Jan & MARTINELLI, César, . "Bargaining over public goods," CORE Discussion Papers RP -2185, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Julio Davila & Jan Eeckhout & C. Martinelli, 2009. "Bargaining over Public Goods," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00633592, HAL.
- Julio Davila & Jan Eeckhout & Cesar Martinelli, 2009. "Bargaining Over Public Goods," Working Papers 0901, Centro de Investigacion Economica, ITAM.
- Julio Davila & Jan Eeckhout & César Martinelli, 2008. "Bargaining over public goods," Documents de travail du Centre d'Economie de la Sorbonne b08041, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-05 (All new papers)
- NEP-GTH-2008-07-05 (Game Theory)
- NEP-PBE-2008-07-05 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rubinstein, Ariel, 1982.
"Perfect Equilibrium in a Bargaining Model,"
Econometric Society, vol. 50(1), pages 97-109, January.
- Julio Davila & Jan Eeckhout, 2004.
"Competitive Bargaining Equilibria,"
Cahiers de la Maison des Sciences Economiques
b04067, Université Panthéon-Sorbonne (Paris 1).
- Theodore Groves & John Ledyard, 1976.
"Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem',"
144, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
- Banks, Jeffrey S. & Duggan, John, 1999. "A Bargaining Model of Collective Choice," Working Papers 1053, California Institute of Technology, Division of the Humanities and Social Sciences.
- Harrington, Joseph Jr., 1989. "The advantageous nature of risk aversion in a three-player bargaining game where acceptance of a proposal requires a simple majority," Economics Letters, Elsevier, vol. 30(3), pages 195-200, September.
- Thomson, William, 1999. " Economies with Public Goods: An Elementary Geometric Exposition," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 1(1), pages 139-76.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If references are entirely missing, you can add them using this form.