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Cost Monotonic Mecanisms

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Author Info
Miguel Ginés Vilar () (Universitat Jaume I)
Francisco Marhuenda (Universidad Carlos III de Madrid)

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Abstract

We study the existence of cost monotonic selections of the core in economies with several public goods. Under quasilinear utilities there is a cost inonotonic core selection mechanism if and only if the agents order the bundles of public goods equally. If this is indeed the case, any such mechanism must choose an egalitarian equivalent allocation. The equal ordering property is no longer required in the case of economies with quasi-linear separable utility functions and separable costs. In this set up, there is essentially only one cost monotoiiic mechanism. Furthermore, it has to select an egalit arian equivalent allocation.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-1995-01.pdf
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File Function: Fisrt version / Primera version, 1995
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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1995-01.

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Length: 32 pages
Date of creation: Jan 1995
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:1995-01

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Related research
Keywords: Public good; cost monotonicity; core; egalit arian equivalent allocations;

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References listed on IDEAS
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  1. Moulin, Herve & Thomson, William, 1988. "Can everyone benefit from growth? : Two difficulties," Journal of Mathematical Economics, Elsevier, vol. 17(4), pages 339-345, September. [Downloadable!] (restricted)
  2. Pazner, Elisha A & Schmeidler, David, 1978. "Egalitarian Equivalent Allocations: A New Concept of Economic Equity," The Quarterly Journal of Economics, MIT Press, vol. 92(4), pages 671-87, November. [Downloadable!] (restricted)
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  3. Herbert E. Scarf, 1965. "The Core of an N Person Game," Cowles Foundation Discussion Papers 182R, Cowles Foundation, Yale University. [Downloadable!]
  4. Herve J. Moulin, 1987. "A Core Selection for Regulating a Single-Output Monopoly," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 397-407, Autumn. [Downloadable!] (restricted)
  5. Moulin, Herve, 1992. "An Application of the Shapley Value to Fair Division with Money," Econometrica, Econometric Society, vol. 60(6), pages 1331-49, November. [Downloadable!] (restricted)
  6. Moulin, Herve, 1987. "Egalitarian-Equivalent Cost Sharing of a Public Good," Econometrica, Econometric Society, vol. 55(4), pages 963-76, July. [Downloadable!] (restricted)
  7. William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
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