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A Characterization of Strongly Locally Incentive Compatible Planning Procedures with Public Goods


  • Jean-Jacques Laffont
  • Eric Maskin


This paper provides a systematic study of planning procedures with public goods in which local truthful revelation of preferences is a dominant strategy. These procedures are said to be strongly locally individually incentive compatible (SLIIC). We first characterize the (time invariant) continuously differentiable planning procedures that are SLIIC. Then, we study properties such as balancedness, cheatproofness with respect to coalitions, neutrality, individual rationality and we point out the connection with the MDP procedures.

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  • Jean-Jacques Laffont & Eric Maskin, 1983. "A Characterization of Strongly Locally Incentive Compatible Planning Procedures with Public Goods," Review of Economic Studies, Oxford University Press, vol. 50(1), pages 171-186.
  • Handle: RePEc:oup:restud:v:50:y:1983:i:1:p:171-186.

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    Cited by:

    1. Ledyard, John O., "undated". "Public Goods: A Survey of Experimental Research," Working Papers 861, California Institute of Technology, Division of the Humanities and Social Sciences.
    2. Kimitoshi Sato, 2016. "The MDP Procedure for public goods and local strategy proofness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-31, December.

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