Optimal Provision of Multiple Excludable Public Goods

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2010
Volume: 2
Issue: 4
Pages: 1-37

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

This paper studies the optimal provision mechanism for multiple excludable public goods. For a class of problems with symmetric goods and binary valuations, we show that the optimal mechanism involves bundling if a regularity condition, akin to a hazard rate condition, on the distribution of valuations is satisfied. Relative to separate provision mechanisms, the optimal bundling mechanism may increase the asymptotic provision probability of socially efficient public goods from zero to one, and decreases the extent of use exclusions. If the regularity condition is violated, the optimal solution replicates the separate provision outcome for the two-good case. (JEL D82, H41)

Technical Details

RePEc Handle
repec:aea:aejmic:v:2:y:2010:i:4:p:1-37
Journal Field
General
Author Count
2
Added to Database
2026-01-25