Public-Good Provision with Many Participants

S-Tier
Journal: Review of Economic Studies
Year: 2003
Volume: 70
Issue: 3
Pages: 589-614

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

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

Abstract

For a nonexcludable public good with benefit and cost functions independent of the number of participants, this paper studies second-best allocations under Bayesian interim incentive compatibility and interim individual rationality. As the number of participants becomes large, second-best provision levels converge in distribution to first-best levels if the latter are bounded. Second-best provision levels become large in absolute terms but small relative to first-best levels if benefit and cost functions are isoelastic. In contrast, for an excludable public good, the ratio of second-best to first-best levels is bounded away from zero. Copyright 2003, Wiley-Blackwell.

Technical Details

RePEc Handle
repec:oup:restud:v:70:y:2003:i:3:p:589-614
Journal Field
General
Author Count
1
Added to Database
2026-01-25