Efficient Mechanisms for Multiple Public Goods
AbstractWe propose two sequential mechanisms for efficient production of public goods. Our analysis differs from the existing literature in allowing for the presence of multiple public goods and in also being “simple.” While both mechanisms ensure efficiency, the payoffs in the first mechanism are asymmetric, being sensitive to the order in which agents move. The second mechanism corrects for this through a two-stage game where the order of moves in the second stage are randomly determined. The payoffs from the second mechanism correspond to the Shapley value of a well-defined game which summarizes the production opportunities available to coalitions in the economy.
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Bibliographic InfoPaper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp314.
Length: 22 pages
Date of creation: Jan 2002
Date of revision:
Publication status: Published in Journal of Public Economics, 2004, vol. 88, pp. 629-644.
public goods; mechanism design; Shapley value;
Other versions of this item:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-05-29 (All new papers)
- NEP-CDM-2003-05-29 (Collective Decision-Making)
- NEP-POL-2003-05-29 (Positive Political Economics)
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