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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Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number
138.
Length: Date of creation: 2004 Date of revision: Handle: RePEc:red:sed004:138
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Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information H41 - Public Economics - - Publicly Provided Goods - - - Public Goods H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
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