IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/197510010700001021.html
   My bibliography  Save this paper

Shapley Value And Lindahl Equilibrium For An Economy With A Public Good: An Example

Author

Listed:
  • Gardner, Roy

Abstract

In an economy, there are essentially three approaches to the problem of value and distribution: pure competition (competitive equilibrium), coalition power (the core), and fair division (the Shapley value) [5]. In an economy without public goods but with a continuum of agents, all three approaches are equivalent, in the sense that they lead to the same allocation of goods and the same imputation of utility [1, 2]. For an economy with public goods, competitive equilibrium is replaced by the analogous concept of Lindahl equilibrium, the other approaches remaining the same.

Suggested Citation

  • Gardner, Roy, 1975. "Shapley Value And Lindahl Equilibrium For An Economy With A Public Good: An Example," ISU General Staff Papers 197510010700001021, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:197510010700001021
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/4914f20b-2d43-4600-8a4c-82d064f85d44/content
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Aumann, Robert J, 1975. "Values of Markets with a Continuum of Traders," Econometrica, Econometric Society, vol. 43(4), pages 611-646, July.
    2. Muench, Thomas J., 1972. "The core and the Lindahl equilibrium of an economy with a public good: an example," Journal of Economic Theory, Elsevier, vol. 4(2), pages 241-255, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richter, Marcel K. & Wong, K.-C.Kam-Chau, 2004. "Concave utility on finite sets," Journal of Economic Theory, Elsevier, vol. 115(2), pages 341-357, April.
    2. Roberto Serrano, 2007. "Cooperative Games: Core and Shapley Value," Working Papers 2007-11, Brown University, Department of Economics.
    3. Omer Edhan, 2012. "Payoffs in Nondifferentiable Perfectly Competitive TU Economies," Discussion Paper Series dp629, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    4. Athreya, Kartik B., 2014. "Big Ideas in Macroeconomics: A Nontechnical View," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262019736, December.
    5. Dubey, Pradeep & Neyman, Abraham, 1984. "Payoffs in Nonatomic Economies: An Axiomatic Approach," Econometrica, Econometric Society, vol. 52(5), pages 1129-1150, September.
    6. Gabriel Desgranges & Sayantan Ghosal, 2021. "Heterogeneous beliefs and approximately self-fulfilling outcomes," Working Papers 2021_07, Business School - Economics, University of Glasgow.
    7. Roberto Serrano, 2007. "Cooperative Games: Core and Shapley Value," Working Papers 2007-11, Brown University, Department of Economics.
    8. Christopher Connell & Eric Rasmusen, 2012. "Concavifying the Quasiconcave," Working Papers 2012-10, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    9. Louis Makowski & Joseph M. Ostroy, 1990. "The Existence of Perfectly Competitive Equilibrium a la Wicksteed," UCLA Economics Working Papers 606, UCLA Department of Economics.
    10. repec:ebl:ecbull:v:8:y:2007:i:6:p:1-4 is not listed on IDEAS
    11. Swanenberg, A.J.M., 1981. "Rationing and price dynamics in a simple market-game," Other publications TiSEM 43559370-0b7a-4bd0-87ed-6, Tilburg University, School of Economics and Management.
    12. Marakulin, V.M., 2013. "On the Edgeworth conjecture for production economies with public goods: A contract-based approach," Journal of Mathematical Economics, Elsevier, vol. 49(3), pages 189-200.
    13. Isabel Cairó & Jae W. Sim, 2020. "Monetary Policy and Financial Stability," Finance and Economics Discussion Series 2020-101, Board of Governors of the Federal Reserve System (U.S.).
    14. Ben-Shahar, Danny & Deng, Yongheng & Sulganik, Eyal, 2009. "Property appraisal in high-rises: A cooperative game theory approach," Journal of Housing Economics, Elsevier, vol. 18(1), pages 25-33, March.
    15. Rosenthal, Robert W., 1976. "Lindahl's solution and values for a public-goods example," Journal of Mathematical Economics, Elsevier, vol. 3(1), pages 37-41, March.
    16. Makowski, Louis & Ostroy, Joseph M., 1992. "Vickrey-Clarke-Groves mechanisms in continuum economies : Characterization and existence," Journal of Mathematical Economics, Elsevier, vol. 21(1), pages 1-35.
    17. Isabel Cairo & Jae Sim, 2017. "Income Inequality, Financial Crises and Monetary Policy," 2017 Meeting Papers 1433, Society for Economic Dynamics.
    18. Isabel Cairó & Jae W. Sim, 2020. "Market Power, Inequality, and Financial Instability," Finance and Economics Discussion Series 2020-057, Board of Governors of the Federal Reserve System (U.S.).
    19. Einy, Ezra & Moreno, Diego & Shitovitz, Benyamin, 1999. "Fine value allocations in large exchange economies with differential information," UC3M Working papers. Economics 6128, Universidad Carlos III de Madrid. Departamento de Economía.
    20. Faias, Marta & Moreno, Emma & Wooders, Myrna, 2009. "A Strategic market game approach for the private provision of public goods," MPRA Paper 37777, University Library of Munich, Germany, revised 08 Mar 2012.
    21. Karl Michael Ortmann, 2016. "The link between the Shapley value and the beta factor," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 39(2), pages 311-325, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:197510010700001021. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.