Cost-sharing mechanism for excludable goods with generalized non-rivalry

Tatsuhiro Shichijo and Emiko Fukuda

Journal of Economic Theory, 2021, vol. 193, issue C

Abstract: Excludable public goods with non-rivalry and private goods with network externalities have similar coordination problems. In this study, we define generalized non-rivalry to investigate coordination mechanisms for both types of goods. We employ the equal cost-sharing with maximal participation (ECSMP) mechanism, which has been studied for excludable public goods with non-rivalry. We find that the mechanism is optimal regarding two welfare criteria in an environment with generalized non-rivalry, within which this study characterizes the ECSMP mechanism. The results indicate that ECSMP is a promising mechanism in a broader context than that considered in the existing literature.

Keywords: Non-rivalry; Network externalities; Equal cost-sharing mechanism; Welfare maximization; Maximal welfare loss; Crowdfunding (search for similar items in EconPapers)
JEL-codes: D71 D82 H23 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022053121000508
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:193:y:2021:i:c:s0022053121000508

DOI: 10.1016/j.jet.2021.105233

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu ().