Serial cost sharing of excludable public goods: general cost functions
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.
Volume (Year): 12 (1998)
Issue (Month): 1 ()
|Note:||Received: June 10, 1996; revised version; February 11, 1997|
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