Sequential Provision of Public Goods

Hal Varian ()

Public Economics from University Library of Munich, Germany

Abstract: I consider the private provision of public goods in two stage games. If the agent who likes the public good least contributes first, the amount of the public good supplied will be the same as in the Nash equilibrium. If the agent who likes the public good most contributes first, less of the public good may be supplied. Similar results hold if the first mover is uncertain of the tastes of the other agent. If the agents bid for the right to move first, the agent who values the public good least will win. If each agent chooses the rate at which he will subsidize the other agent's contributions, the subsidies that support the Lindahl allocation are the unique equilibrium outcome. I also describe two related subsidy-setting games that yield Lindahl allocations in $n$-person games with general utility functions.}

JEL-codes: D6 D7 H (search for similar items in EconPapers)
Date: 1994-01-18
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Citations: View citations in EconPapers (37)

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Related works:
Working Paper: Sequential Provision of Public Goods (1991)
Working Paper: SEQUENTIAL PROVISION OF PUBLIC GOODS (1990)
Working Paper: SEQUENTIAL PROVISION OF PUBLIC GOODS (1989)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:9401003

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