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Serial cost sharing of excludable public goods: general cost functions


  • James A. Dearden

    (Department of Economics, 621 Taylor Street, Lehigh University, Bethlehem, PA 18015, USA)


A group of individuals meet to share the cost and determine output allocations of a partial-excludable public good. We demonstrate that, for general cost functions and preferences that satisfy the Spence-Mirlees sorting condition, the serial cost-sharing formula (Moulin, 1994) has remarkable incentive properties. First, a direct economic mechanism that uses the serial formula is coalition strategy-proof, envy-free and satisfies the stand-alone property. Second, the serial mechanism involves partial exclusion, which is important for the reduction of the free-rider problem.

Suggested Citation

  • James A. Dearden, 1998. "Serial cost sharing of excludable public goods: general cost functions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 12(1), pages 189-198.
  • Handle: RePEc:spr:joecth:v:12:y:1998:i:1:p:189-198 Note: Received: June 10, 1996; revised version; February 11, 1997

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    Cited by:

    1. Maniquet, François & Sprumont, Yves, 2010. "Sharing the cost of a public good: An incentive-constrained axiomatic approach," Games and Economic Behavior, Elsevier, vol. 68(1), pages 275-302, January.
    2. Kazuhiko Hashimoto & Hiroki Saitoh, 2016. "Strategy-proof rules for an excludable public good," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 749-766, April.
    3. Peter Norman, 2004. "Efficient Mechanisms for Public Goods with Use Exclusions," Review of Economic Studies, Oxford University Press, vol. 71(4), pages 1163-1188.
    4. Norman,P., 2000. "Efficient mechanisms for public goods with use exclusions," Working papers 15, Wisconsin Madison - Social Systems.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design


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