The ``crowding types'' model of a local public goods economy makes a distinction between crowding effects and tastes of agents. Decentralization of the core is possible both with anonymous admission prices that depend only on publicly observable information and, when technology is linear, with Lindahl (per unit) prices. Lindahl price systems are superior to admission prices since they can be specified with only a finite number of prices. Here, we show that the core is equivalent to the set of nonanonymous Lindahl equilibria, even with nonlinear technology. The core is generally larger, however, than the set of anonymous Lindahl equilibria.
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Paper provided by University of Toronto, Department of Economics in its series Working Papers with number
mwooders-98-02.
Find related papers by JEL classification: C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
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