IDEAS home Printed from
   My bibliography  Save this paper

Mixed Markets with Public Goods



We use a mixed market model for analyzing economies with public projects in which the condition of perfect competition is violated. We discuss core-equivalence results in the general framework of non-Euclidean representation of the collective goods. We show that if large traders are similar to each other, then they lose their market power and hence the equivalence theorem can be restored. This is possible assuming a cost distribution function to fix the fraction that each large or small agent is expected to cover of the total cost of providing the project. We show that, for each given individual and coalitional contribution scheme, the resulting core is equivalent to the corresponding linear cost share equilibria. Finally, we investigate on weaker equivalences when the assumption that all large traders are of the same type is dropped. An analysis of mixed markets with public goods via atomless economies is provided, joint with an extension of Schmeidler and Vind results on the measure of blocking coalitions.

Suggested Citation

  • Achille Basile & Maria Gabriella Graziano & Maria Laura Pesce, 2010. "Mixed Markets with Public Goods," CSEF Working Papers 261, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 29 May 2012.
  • Handle: RePEc:sef:csefwp:261

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Maria Gabriella Graziano & Maria Romaniello, 2016. "Stable sets of allocations and the provision of public goods," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 62(1), pages 15-42, June.
    2. Pesce, Marialaura, 2014. "The veto mechanism in atomic differential information economies," Journal of Mathematical Economics, Elsevier, vol. 53(C), pages 33-45.
    3. Maria Graziano & Maria Romaniello, 2012. "Linear cost share equilibria and the veto power of the grand coalition," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(2), pages 269-303, February.

    More about this item


    Mixed markets; coalitional fairness; envy; efficiency; asymmetric information;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Maria Carannante (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.