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Simple subscription mechanisms for excludable public goods

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>07/1999
<mark>Journal</mark>Journal of Economic Theory
Issue number1
Volume87
Number of pages23
Pages (from-to)72-94
Publication StatusPublished
<mark>Original language</mark>English

Abstract

For excludable public goods, we propose simple mechanisms to uniquely implement a (core) stable and efficient production and cost-sharing outcome: consumers are asked to announce sequentially their minimal requested level of public good and a subscription towards its production. In one mechanism the subscriptions depend on the order of moves. In a second mechanism, the subscriptions are order-independent and thus symmetric. The equilibrium outcomes induced by our mechanisms are immune to strategic deviations by coalitions. Journal of Economic Literature Classification Numbers: H41, C72, D78. © 1999 Academic Press.