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Axiomatization of ratio equilibria in public good economies

Author

Listed:
  • Anne van den Nouweland

    (Department of Economics, University of Oregon, Eugene, OR 97403-1285, USA)

  • Myrna H. Wooders

    (Department of Economics, University of Warwick, Coventry CV4 7AL, UK)

  • S. Tijs

    (Department of Econometrics and CentER for Economic Research, Tilburg University, P.O. Box 90153, 5000 LE Tilburg, The Netherlands)

Abstract

Using consistency properties, we characterize the cost-sharing scheme arising from the ratio equilibrium concept for economies with public goods. The characterization turns out to be surprisingly simple and direct. In contrast to most axiomatic characterizations based on reduced games and consistency properties, our characterization requires that in the reduced game, the players take as given the proportions of the costs paid by the members of the complementary player set, rather than their utility levels.

Suggested Citation

  • Anne van den Nouweland & Myrna H. Wooders & S. Tijs, 2002. "Axiomatization of ratio equilibria in public good economies," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(3), pages 627-636.
    • Handle: RePEc:spr:sochwe:v:19:y:2002:i:3:p:627-636
    Note: Received: 4 July 1996/Accepted: 28 March 2001
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    Cited by:

    1. Kesternich, Martin & Lange, Andreas & Sturm, Bodo, 2014. "The impact of burden sharing rules on the voluntary provision of public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 107-123.
    2. Anne van den Nouweland & Agnieszka Rusinowska, 2020. "Bargaining foundation for ratio equilibrium in public‐good economies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(2), pages 302-319, April.
    3. van den Nouweland, A. & Wooders, M. H., "undated". "Status Equilibrium in Local Public Good Economies," Economic Research Papers 269626, University of Warwick - Department of Economics.
    4. Wolfgang Buchholz & Wolfgang Peters, 2007. "Justifying the Lindahl solution as an outcome of fair cooperation," Public Choice, Springer, vol. 133(1), pages 157-169, October.
    5. Thomson, William, 2011. "Chapter Twenty-One - Fair Allocation Rules," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 2, chapter 21, pages 393-506, Elsevier.
    6. Nizar Allouch, 2013. "A competitive equilibrium for a warm-glow economy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(1), pages 269-282, May.
    7. Currarini, Sergio, 2002. "Voting on public goods in multi-jurisdictional systems," Research in Economics, Elsevier, vol. 56(2), pages 215-230, June.
    8. van den Nouweland, Anne & Wooders, Myrna, 2011. "Share equilibrium in local public good economies," Journal of Mathematical Economics, Elsevier, vol. 47(3), pages 376-381.
    9. Matt Van Essen, 2013. "Regulating the Anticommons: Insights from Public‐Expenditure Theory," Southern Economic Journal, John Wiley & Sons, vol. 80(2), pages 523-539, October.
    10. Matt Van Essen & Ivan Anich, 2025. "Just Lindahl Taxation A Welfarist Solution," Working Papers 2025-01, University of Tennessee, Department of Economics.
    11. Anne van den Nouweland & Myrna H. Wooders, 2005. "Status Equilibrium for Local Public Good Economies," Vanderbilt University Department of Economics Working Papers 0523, Vanderbilt University Department of Economics.

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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