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Public Provision of Private Goods

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Author Info

  • Peter Norman
  • Hanming Fang

Abstract

We consider an environment with asymmetric information about preferences for a public good and a private good. If the public good must be financed from contributions made by participants and if participants must be given incentives to participate in the mechanism, we show that there are circumstances when the private good should be bundled with the public good, in spite of the. We interpret this as an efficiency rationale for public provision of private goods

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 138.

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Date of creation: 2004
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Handle: RePEc:red:sed004:138

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Related research

Keywords: Public Goods; Bundling; Efficiency;

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Cited by:
  1. Martin Hellwig, 2006. "The Provision and Pricing of Excludable Public Goods: Ramsey-Boiteux Pricing versus Bundling," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2006_21, Max Planck Institute for Research on Collective Goods.

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