The Theory of Cost Sharing

Shlomo Weber () and Hans Wiesmeth

Discussion Paper Serie A from University of Bonn, Germany

Abstract: This paper investigates efficiency and equitability issues given a cost sharing method f in an economy with a public commodity. We introduce the basic concept of a f-Lindahl equilibrium and study the set of all these particular equilibrium allocations. It then turns out that this set is contained in the core of the economy. Finally, we devise a mechanism to implement f-Lindahl equilibria.

Date: Written

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Persistent link: http://EconPapers.repec.org/RePEc:bon:bonsfa:257

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