Public-Good Provision with Many Participants
For a nonexcludable public good with benefit and cost functions independent of the number of participants, this paper studies second-best allocations under Bayesian interim incentive compatibility and interim individual rationality. As the number of participants becomes large, second-best provision levels converge in distribution to first-best levels if the latter are bounded. Second-best provision levels become large in absolute terms but small relative to first-best levels if benefit and cost functions are isoelastic. In contrast, for an excludable public good, the ratio of second-best to first-best levels is bounded away from zero. Copyright The Review of Economic Studies Limited, 2003.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 70 (2003)
Issue (Month): 3 (07)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6527 |
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0034-6527|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roger B. Myerson & Mark A. Satterthwaite, 1981.
"Efficient Mechanisms for Bilateral Trading,"
469S, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Brito, Dagobert L & Oakland, William H, 1980. "On the Monopolistic Provision of Excludable Public Goods," American Economic Review, American Economic Association, vol. 70(4), pages 691-704, September.
- Rob, R., 1988.
"Pollution Claim Settlements Under Private Information,"
19-88, Tel Aviv.
- Rob, Rafael, 1989. "Pollution claim settlements under private information," Journal of Economic Theory, Elsevier, vol. 47(2), pages 307-333, April.
- Werner Güth & Martin Hellwig, 1986.
"The private supply of a public good,"
Journal of Economics,
Springer, vol. 46(1), pages 121-159, December.
- Cramton, Peter & Gibbons, Robert & Klemperer, Paul, 1987.
"Dissolving a Partnership Efficiently,"
Econometric Society, vol. 55(3), pages 615-32, May.
- Peter Cramton & Robert Gibbons & Paul Klemperer, 1985. "Dissolving a Partnership Efficiently," Working papers 406, Massachusetts Institute of Technology (MIT), Department of Economics.
- Peter Cramton & Robert Gibbons & Paul Klemperer, 1987. "Dissolving a Partnership Efficiently," Papers of Peter Cramton 87econ, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
- John O. Ledyard & Thomas R. Palfrey, 1999. "A Characterization of Interim Efficiency with Public Goods," Econometrica, Econometric Society, vol. 67(2), pages 435-448, March.
- Cornelli, Francesca, 1996. "Optimal Selling Procedures with Fixed Costs," Journal of Economic Theory, Elsevier, vol. 71(1), pages 1-30, October.
- John O. Ledyard & Thomas R. Palfrey, 1994.
"Voting and Lottery Drafts as Efficient Public Goods Mechanisms,"
Game Theory and Information
9405003, EconWPA, revised 22 May 1994.
- Ledyard, John O & Palfrey, Thomas R, 1994. "Voting and Lottery Drafts as Efficient Public Goods Mechanisms," Review of Economic Studies, Wiley Blackwell, vol. 61(2), pages 327-55, April.
- Ledyard, John O. & Palfrey, Thomas R., . "Voting and Lottery Drafts as Efficient Public Goods Mechanisms," Working Papers 717, California Institute of Technology, Division of the Humanities and Social Sciences.
- d'Aspremont, Claude & Gerard-Varet, Louis-Andre, 1979.
"Incentives and incomplete information,"
Journal of Public Economics,
Elsevier, vol. 11(1), pages 25-45, February.
- James A. Dearden, 1998. "Serial cost sharing of excludable public goods: general cost functions," Economic Theory, Springer, vol. 12(1), pages 189-198.
- Roberts, John, 1976.
"The incentives for correct revelation of preferences and the number of consumers,"
Journal of Public Economics,
Elsevier, vol. 6(4), pages 359-374, November.
- ROBERTS, John, . "The incentives for correct revelation of preferences and the number of consumers," CORE Discussion Papers RP -272, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Schmitz, Patrick W., 1997.
"Monopolistic Provision of Excludable Public Goods under Private Information,"
6549, University Library of Munich, Germany.
- Schmitz, Patrick W, 1997. "Monopolistic Provision of Excludable Public Goods under Private Information," Public Finance = Finances publiques, , vol. 52(1), pages 89-101.
- Peter Norman, 2004.
"Efficient Mechanisms for Public Goods with Use Exclusions,"
Review of Economic Studies,
Wiley Blackwell, vol. 71(4), pages 1163-1188, October.
- Norman,P., 2000. "Efficient mechanisms for public goods with use exclusions," Working papers 15, Wisconsin Madison - Social Systems.
- Dearden, James A., 1997. "Efficiency and exclusion in collective action allocations," Mathematical Social Sciences, Elsevier, vol. 34(2), pages 153-174, October.
- Pesendorfer, Martin, 1998. "Pollution Claim Settlements under Correlated Information," Journal of Economic Theory, Elsevier, vol. 79(1), pages 72-105, March.
- Stokey, Nancy L, 1979. "Intertemporal Price Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 93(3), pages 355-71, August.
- Neeman, Zvika, 1999. "Property Rights and Efficiency of Voluntary Bargaining under Asymmetric Information," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 679-91, July.
- Al-Najjar, Nabil I. & Smorodinsky, Rann, 2000. "Pivotal Players and the Characterization of Influence," Journal of Economic Theory, Elsevier, vol. 92(2), pages 318-342, June.
- Riley, John & Zeckhauser, Richard, 1983. "Optimal Selling Strategies: When to Haggle, When to Hold Firm," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 267-89, May.
When requesting a correction, please mention this item's handle: RePEc:bla:restud:v:70:y:2003:i:3:p:589-614. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.