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An Allocation Rule with Wealth-Regressive Tax Rates

Remzi Sanver ()

Journal of Public Economic Theory, 2002, vol. 4, issue 1, 63-69

Abstract: We introduce a public good allocation rule whose direct implementation by asking agents their endowments leads to Nash equilibrium outcomes--always Pareto dominating voluntary contributions outcomes. Although the Nash equilibrium allocations induced by this rule are not Pareto optimal in general, they are so in two-person economies. Copyright 2002 by Blackwell Publishing Inc.

Date: 2002
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Handle: RePEc:bla:jpbect:v:4:y:2002:i:1:p:63-69