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Subsiding Private Contributions to a Pure Public Good: A Diagrammatic Analysis

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  • Jones, C.

Abstract

This paper uses the geometric analysis in Cornes and Sandler to demonstrate the Lindahl equilibrium when private contributions are subsidised in a non-cooperative setting i.e., in a setting where consumers take as constant the contributions by all others when making their own.

Suggested Citation

  • Jones, C., 1999. "Subsiding Private Contributions to a Pure Public Good: A Diagrammatic Analysis," Papers 359, Australian National University - Department of Economics.
  • Handle: RePEc:fth:aunaec:359
    as

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    References listed on IDEAS

    as
    1. William Novshek, 1985. "On the Existence of Cournot Equilibrium," Review of Economic Studies, Oxford University Press, pages 85-98.
    2. Kaneko, Mamoru & Yamamoto, Yoshitsugu, 1986. "The existence and computation of competitive equilibria in markets with an indivisible commodity," Journal of Economic Theory, Elsevier, vol. 38(1), pages 118-136, February.
    3. Lopomo, Giuseppe, 2001. "Optimality and Robustness of the English Auction," Games and Economic Behavior, Elsevier, pages 219-240.
    4. Castelli, Francesco & Leporelli, Claudio, 1993. "Critical mass of users versus critical mass of services in a multiproduct information service system," Information Economics and Policy, Elsevier, vol. 5(4), pages 331-355, December.
    5. Scotchmer, Suzanne, 1985. "Profit-maximizing clubs," Journal of Public Economics, Elsevier, vol. 27(1), pages 25-45, June.
    6. Young, Allan Richard, 1991. "Transaction Cost, Two-Part Tariffs, and Collusion," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 581-590, July.
    7. Ireland, Norman J, 1991. "Welfare and Non-linear Pricing in a Cournot Oligopoly," Economic Journal, Royal Economic Society, vol. 101(407), pages 949-957, July.
    8. Mandy, David M, 1992. "Nonuniform Bertrand Competition," Econometrica, Econometric Society, vol. 60(6), pages 1293-1330, November.
    9. Suzanne Scotchmer, 1985. "Two-Tier Pricing of Shared Facilities in a Free-Entry Equilibrium," RAND Journal of Economics, The RAND Corporation, pages 456-472.
    10. Shaffer, Sherrill, 1987. "Two-Part Tariffs in a Contestable Natural Monopoly," Economica, London School of Economics and Political Science, vol. 54(215), pages 315-316, August.
    11. David M. Kreps & Jose A. Scheinkman, 1983. "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 326-337, Autumn.
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    More about this item

    Keywords

    PUBLIC GOODS ; PUBLIC POLICY ; GOVERNMENT;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H29 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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