Implementing Lindahl allocations in a warm-glow economy

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 217
Issue: C

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We provide a mechanism, the Nash equilibria of which coincide with the Lindahl allocations with two personalized prices in an economy that may display warm-glow preferences. The traditional techniques in implementing Lindahl allocations crucially depend on one Lindahl price for each consumer. The novel contribution of our mechanism is that it offers a construction of two personalized prices for each consumer, their individual contributions and the corresponding tax rules that align consumers’ incentives to restore efficiency. Our construction has potential applications to efficient provision of public goods in networks, which would require multiple Lindahl prices.

Technical Details

RePEc Handle
repec:eee:ecolet:v:217:y:2022:i:c:s0165176522001999
Journal Field
General
Author Count
2
Added to Database
2026-01-25