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Efficient mechanisms for multiple public goods

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>03/2004
<mark>Journal</mark>Journal of Public Economics
Issue number3-4
Volume88
Number of pages16
Pages (from-to)629-644
Publication StatusPublished
<mark>Original language</mark>English

Abstract

We propose two sequential mechanisms for efficient production of public goods. Our analysis differs from the existing literature in allowing for the presence of multiple public goods and in also being 'simple'. While both mechanisms ensure efficiency, the payoffs in the first mechanism are asymmetric, being sensitive to the order in which agents move. The second mechanism corrects for this through a two-stage game where the order of moves in the second stage is randomly determined. The payoffs from the second mechanism correspond to the Shapley value of a well-defined game which summarizes the production opportunities available to coalitions in the economy. © 2003 Elsevier B.V. All rights reserved.