Serial cost sharing of excludable public goods: general cost functions

B-Tier
Journal: Economic Theory
Year: 1998
Volume: 12
Issue: 1
Pages: 189-198

Score contribution per author:

2.018 = (α=2.02 / 1 authors) × 1.0x B-tier

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

Abstract

A group of individuals meet to share the cost and determine output allocations of a partial-excludable public good. We demonstrate that, for general cost functions and preferences that satisfy the Spence-Mirlees sorting condition, the serial cost-sharing formula (Moulin, 1994) has remarkable incentive properties. First, a direct economic mechanism that uses the serial formula is coalition strategy-proof, envy-free and satisfies the stand-alone property. Second, the serial mechanism involves partial exclusion, which is important for the reduction of the free-rider problem.

Technical Details

RePEc Handle
repec:spr:joecth:v:12:y:1998:i:1:p:189-198
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25