Choosing and Sharing
Jérémy Laurent-Lucchetti and
Justin Leroux
No 07-13, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée
Abstract:
Choosing a project for which benefits accrue to all involved agents but brings major costs or additional benefits to only one agent is often problematic. Siting a nationwide nuclear waste disposal or hosting a major sporting event are examples of such a problem: costs or benefits are tied to the identity of the host of the project. Our goals are twofold: to choose the efficient site (the host with the lowest cost or the highest localized surplus) and to share the cost, or surplus, in a predetermined way so as to achieve redistributive goals. We propose a simple mechanism to implement both objectives. The unique subgame-perfect Nash equilibrium of our mechanism coincides with truthtelling, is efficient, budget-balanced and immune to coalitional deviations.
Pages: 24 pages
Date: 2007-12
New Economics Papers: this item is included in nep-gth and nep-ppm
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.hec.ca/iea/cahiers/2007/iea0713_jleroux.pdf (application/pdf)
Related works:
Journal Article: Choosing and sharing (2011) 
Working Paper: Choosing and Sharing (2009) 
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:iea:carech:0713
Ordering information: This working paper can be ordered from
Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7
The price is Free.
Access Statistics for this paper
More papers in Cahiers de recherche from HEC Montréal, Institut d'économie appliquée Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7. Contact information at EDIRC.
Bibliographic data for series maintained by Patricia Power ().