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Discrete Public goods with incomplete information

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Author Info
Flavio Menezes (ANU)
Paulo Klinger Monteiro (IMPA)
Akram Temimi

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Abstract

We analyze simultaneous discrete public good games with incomplete information and continuous contributions. To use the terminology of Admati and Perry (1991), we consider contribution and subscription games. In the former, contributions are not refunded if the project is not completed, while in the latter they are. We provide necessary conditions that increasing equilibria of contribution games and subscription games must satisfy for general distribution functions. We then characterize a symmetric equilibrium of the subscription game when valuations are uniformly distributed. Our analysis shows that there is a significant difference between the equilibrium outcomes of the two games. In fact, we show that for the contribution game, ``contributing zero'' is the only equilibrium for a general family of distributions.

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File URL: http://129.3.20.41/eps/mic/papers/9901/9901004.pdf
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Publisher Info
Paper provided by EconWPA in its series Microeconomics with number 9901004.

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Length: 19 pages
Date of creation: 21 Jan 1999
Date of revision: 06 Jul 1999
Handle: RePEc:wpa:wuwpmi:9901004

Note: Type of Document - Postscript file; prepared on IBM PC - PC- TEX; to print on HP; pages: 19
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Web page: http://129.3.20.41

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Related research
Keywords: public goods; incomplete information;

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Find related papers by JEL classification:
D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other
D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
H89 - Public Economics - - Miscellaneous Issues - - - Other

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  1. Gradstein, Mark, 1994. "Efficient Provision of a Discrete Public Good," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(4), pages 877-97, November. [Downloadable!] (restricted)
  2. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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