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The private provision of excludable public goods: An inefficiency result

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  • Ellingsen, Tore
  • Paltseva, Elena

Abstract

Does voluntary contracting suffice for the efficient provision of excludable public goods? Even in a complete information environment, we find that the answer is negative. The reason is that some agents may profit from not participating at the provision stage, but instead negotiate access ex post.

Suggested Citation

  • Ellingsen, Tore & Paltseva, Elena, 2012. "The private provision of excludable public goods: An inefficiency result," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 658-669.
  • Handle: RePEc:eee:pubeco:v:96:y:2012:i:9:p:658-669
    DOI: 10.1016/j.jpubeco.2012.05.010
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Marco Battaglini & Bård Harstad, 2016. "Participation and Duration of Environmental Agreements," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 160-204.
    2. repec:eee:poleco:v:48:y:2017:i:c:p:91-103 is not listed on IDEAS
    3. Akira Okada, 2018. "Non-cooperative Bargaining for Side Payments Contract," KIER Working Papers 983, Kyoto University, Institute of Economic Research.
    4. Noriaki Matsushima & Ryusuke Shinohara, 2015. "Pre-negotiation commitment and internalization in public good provision through bilateral negotiations," ISER Discussion Paper 0948r, Institute of Social and Economic Research, Osaka University, revised Aug 2017.
    5. Harstad, Bård, 2016. "The market for conservation and other hostages," Journal of Economic Theory, Elsevier, vol. 166(C), pages 124-151.
    6. George Economides & Apostolis Philippopoulos & Stelios Sakkas, 2016. "Tuition Fees, as User Prices, and Private Incentives," CESifo Working Paper Series 5991, CESifo Group Munich.

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    Keywords

    Contracting; Externalities; Club goods; Free-riding;

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