Equilibrium participation in public goods allocations
An alternative notion of individual rationality for mechanism design is studied in which mechanisms suggest public goods allocations and individuals then choose whether or not to submit their requested transfer to the central planner. The set of allocations such that unanimous participation is a Nash equilibrium is shown to be sub-optimal in a wide variety of environments and shrinks to the endowment as the economy is replicated. Therefore, any non-trivial mechanism suffers from non-participation in the selected outcome when agents cannot be coerced to contribute.
(This abstract was borrowed from another version of this item.)
Volume (Year): 14 (2010)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/journal/10058|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Eric Maskin & John Moore, 1999.
"Implementation and Renegotiation,"
Review of Economic Studies,
Oxford University Press, vol. 66(1), pages 39-56.
- Eric Maskin & John Moore, 1998. "Implementation and renegotiation," LSE Research Online Documents on Economics 19350, London School of Economics and Political Science, LSE Library.
- Eric Maskin & John Moore, 1999. "Implementation and Renegotiation," Harvard Institute of Economic Research Working Papers 1863, Harvard - Institute of Economic Research.
- John Ledyard & John Roberts, 1975. "On the Incentive Problem with Public Goods," Discussion Papers 116, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Cason, Timothy N. & Saijo, Tatsuyoshi & Yamato, Takehiko & Yokotani, Konomu, 2004.
"Non-excludable public good experiments,"
Games and Economic Behavior,
Elsevier, vol. 49(1), pages 81-102, October.
- Saijo, Tatsuyoshi & Yamato, Takehiko & Yokotani, Konomu & Cason, Timothy N., 2002. "Non-Excludable Public Good Experiments," Working Papers 1154, California Institute of Technology, Division of the Humanities and Social Sciences.
- Tatsuyoshi Saijo, 2003. "Non-Excludable Public Good Experiments," Theory workshop papers 505798000000000027, UCLA Department of Economics.
- Jackson, Matthew O. & Palfrey, Thomas R., 2001.
Journal of Economic Theory,
Elsevier, vol. 98(1), pages 1-25, May.
- Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- Eric Maskin, 1999. "Nash Equilibrium and Welfare Optimality," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 23-38.
- Richter, Donald K, 1974. "The Core of a Public Goods Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 15(1), pages 131-42, February.
- Hurwicz, Leonid, 1979. "On allocations attainable through Nash equilibria," Journal of Economic Theory, Elsevier, vol. 21(1), pages 140-165, August.
- Theodore Groves & John Ledyard, 1976.
"Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem',"
144, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
- Ma, Ching-to & Moore, John & Turnbull, Stephen, 1988. "Stopping agents from "cheating"," Journal of Economic Theory, Elsevier, vol. 46(2), pages 355-372, December.
- Matthew O. Jackson & Thomas R. Palfrey, 1998.
"Efficiency and Voluntary Implementation in Markets with Repeated Pairwise Bargaining,"
Econometric Society, vol. 66(6), pages 1353-1388, November.
- Matthew O. Jackson & Thomas R. Palfrey, 1997. "Efficiency and Voluntary Implementation in Markets with Repeated Pairwise Bargaining," Game Theory and Information 9711003, EconWPA.
- Saijo, Tatsuyoshi & Yamato, Takehiko, 1999. "A Voluntary Participation Game with a Non-excludable Public Good," Journal of Economic Theory, Elsevier, vol. 84(2), pages 227-242, February.
When requesting a correction, please mention this item's handle: RePEc:spr:reecde:v:14:y:2010:i:1:p:27-50. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.