Pareto Improving Lotteries and Voluntary Public Goods Provision
This paper characterizes the utility possibility frontier resulting in a model of private voluntary provision of a public good. It is shown that ex-ante lotteries over resource distributions among the agents can be Pareto improving. A corollary is that an equal distribution of resources among the agents, or any distribution where all agents contribute in equilibrium, is always Pareto dominated by a lottery between two unequal distributions.
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Volume (Year): 6 (2006)
Issue (Month): 1 (July)
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