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Public goods provision: Unit-by-unit cost-sharing rules and the core

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  • Yan Yu

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Abstract

In a simple model of one public good producible from one input, we show that unit-by-unit cost-sharing rules have two properties. First, a unit-by-unit cost-sharing rulealways chooses a core allocation. Second, every allocation in the core will be chosen by at least one unit-by-unit cost-shring rule. We argue that costs should be shared on a unit-by-unit basis. We propose a simple mechanism to implement the family of unit-by-unit rules. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • Yan Yu, 2005. "Public goods provision: Unit-by-unit cost-sharing rules and the core," Review of Economic Design, Springer;Society for Economic Design, vol. 9(4), pages 363-376, December.
  • Handle: RePEc:spr:reecde:v:9:y:2005:i:4:p:363-376
    DOI: 10.1007/s10058-005-0135-9
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    File URL: http://hdl.handle.net/10.1007/s10058-005-0135-9
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    Cited by:

    1. Junnosuke Shino, 2012. "2x2 Delegation Games With Implementability In Weakly Undominated SPNE," Departmental Working Papers 201202, Rutgers University, Department of Economics.

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    Keywords

    Public goods; cost-sharing; core;

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