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Discrete Public goods with incomplete information

Author

Listed:
  • Flavio Menezes

    (ANU)

  • Paulo Klinger Monteiro

    (IMPA)

  • Akram Temimi

Abstract

We analyze simultaneous discrete public good games with incomplete information and continuous contributions. To use the terminology of Admati and Perry (1991), we consider contribution and subscription games. In the former, contributions are not refunded if the project is not completed, while in the latter they are. We provide necessary conditions that increasing equilibria of contribution games and subscription games must satisfy for general distribution functions. We then characterize a symmetric equilibrium of the subscription game when valuations are uniformly distributed. Our analysis shows that there is a significant difference between the equilibrium outcomes of the two games. In fact, we show that for the contribution game, ``contributing zero'' is the only equilibrium for a general family of distributions.

Suggested Citation

  • Flavio Menezes & Paulo Klinger Monteiro & Akram Temimi, 1999. "Discrete Public goods with incomplete information," Microeconomics 9901004, University Library of Munich, Germany, revised 06 Jul 1999.
    • Handle: RePEc:wpa:wuwpmi:9901004
    Note: Type of Document - Postscript file; prepared on IBM PC - PC- TEX; to print on HP; pages: 19
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    References listed on IDEAS

    as
    1. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    2. d'Aspremont, C. & Gerard-Varet, L. -A., 1982. "Bayesian incentive compatible beliefs," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 83-103, June.
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    2. Shingo Yamazaki, 2019. "Private provision of discrete public goods: the correlated cost case," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(3), pages 477-496, March.

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    More about this item

    Keywords

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    JEL classification:

    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other
    • H89 - Public Economics - - Miscellaneous Issues - - - Other

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