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Private Provision of Public Goods under Delegated Common Agency

Author

Listed:
  • Tsung-Sheng Tsai

    (Institute of Economics, Academia Sinica)

Abstract

This paper considers a delegated common agent who produces a public good with private information regarding his cost. We show that truthful strategies are not optimal for principals, and that the agent enjoys some rent in equilibrium. It is not always that all principals make contributions: the number of contracts with positive contributions accepted by the agent in equilibrium is non-increasing as the agent becomes less efficient.

Suggested Citation

  • Tsung-Sheng Tsai, 2005. "Private Provision of Public Goods under Delegated Common Agency," Economics Bulletin, AccessEcon, vol. 8(13), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-05h00093
    as

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    File URL: http://www.accessecon.com/pubs/EB/2005/Volume8/EB-05H00093A.pdf
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    References listed on IDEAS

    as
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    2. Martimort David & Stole Lars, 2003. "Contractual Externalities and Common Agency Equilibria," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-40, July.
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    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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