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Public goods provision: Unit-by-unit cost-sharing rules and the core

Yan Yu ()

Review of Economic Design, 2005, vol. 9, issue 4, 363-376

Abstract: In a simple model of one public good producible from one input, we show that unit-by-unit cost-sharing rules have two properties. First, a unit-by-unit cost-sharing rulealways chooses a core allocation. Second, every allocation in the core will be chosen by at least one unit-by-unit cost-shring rule. We argue that costs should be shared on a unit-by-unit basis. We propose a simple mechanism to implement the family of unit-by-unit rules. Copyright Springer-Verlag Berlin/Heidelberg 2005

Keywords: Public goods; cost-sharing; core (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/s10058-005-0135-9

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