A new mechanism to implement the Lindahl equilibriums (In French)
This paper presents a new economic mechanism, such that the associated game form implements Lindahl equilibria as Nash equilibria. Each player sends a 2-dimensional message, in order to tell his marginal propensity to pay and his demand for the public good. At a Nash equilibrium, the players directly and honestly reveal data defining a Lindahl equilibrium and the mechanism implements the corresponding allocation. In a quasi-linear economy, formalizing out-of-equilibrium behaviours of the players as a gradient process, the unique stationary point of this process is a Nash equilibrium of the game and it is shown to be globally stable.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Avenue Léon Duguit, 33608 Pessac Cedex|
Phone: +33 (0)220.127.116.11.75
Fax: +33 (0)18.104.22.168.47
Web page: http://gretha.u-bordeaux4.fr/
More information through EDIRC
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.:
- Yan Chen, 2002. "A family of supermodular Nash mechanisms implementing Lindahl allocations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 19(4), pages 773-790.
- Chen, Yan & Plott, Charles R., .
"The Groves-Ledyard Mechanism: An Experimental Study of Institutional Design,"
867, California Institute of Technology, Division of the Humanities and Social Sciences.
- Chen, Yan & Plott, Charles R., 1996. "The Groves-Ledyard mechanism: An experimental study of institutional design," Journal of Public Economics, Elsevier, vol. 59(3), pages 335-364, March.
- Groves, Theodore & Ledyard, John O, 1977.
"Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem,"
Econometric Society, vol. 45(4), pages 783-809, May.
- Theodore Groves & John Ledyard, 1976. "Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem'," Discussion Papers 144, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Groves, Theodore & Ledyard, John O, 1980.
"The Existence of Efficient and Incentive Compatible Equilibria with Public Goods,"
Econometric Society, vol. 48(6), pages 1487-1506, September.
- Groves, Theodore & Ledyard, John O., 1978. "The Existence of Efficient and Incentive Compatible Equilibria with Public Goods," Working Papers 203, California Institute of Technology, Division of the Humanities and Social Sciences.
- Falkinger, Josef, 1996. "Efficient private provision of public goods by rewarding deviations from average," Journal of Public Economics, Elsevier, vol. 62(3), pages 413-422, November.
- Foley, Duncan K, 1970.
"Lindahl's Solution and the Core of an Economy with Public Goods,"
Econometric Society, vol. 38(1), pages 66-72, January.
- D. K. Foley, 1967. "Lindahl's Solution and the Core of an Economy with Public Goods," Working papers 3, Massachusetts Institute of Technology (MIT), Department of Economics.
- Smith, Vernon L, 1980. "Experiments with a Decentralized Mechanism for Public Good Decisions," American Economic Review, American Economic Association, vol. 70(4), pages 584-99, September.
- L. Hurwicz, 1979. "Outcome Functions Yielding Walrasian and Lindahl Allocations at Nash Equilibrium Points," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 217-225.
- Yan Chen & Fang-Fang Tang, 1998. "Learning and Incentive-Compatible Mechanisms for Public Goods Provision: An Experimental Study," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 633-662, June.
- Theodore Groves, 1979. "Efficient Collective Choice when Compensation is Possible," Review of Economic Studies, Oxford University Press, vol. 46(2), pages 227-241.
When requesting a correction, please mention this item's handle: RePEc:grt:wpegrt:2009-09. 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: (Emmanuel Petit)
If references are entirely missing, you can add them using this form.