Optimal Provision of Multiple Excludable Public Goods
54 Pages Posted: 13 Feb 2008 Last revised: 14 Sep 2022
There are 2 versions of this paper
Optimal Provision of Multiple Excludable Public Goods
Date Written: February 2008
Abstract
This paper studies the optimal provision mechanism for multiple excludable public goods when agents' valuations are private information. For a parametric class of problems with binary valuations, we demonstrate that the optimal mechanism involves bundling if a regularity condition, akin to a hazard rate condition, on the distribution of valuations is satisfied. Bundling alleviates the free riding problem in large economies in two ways: first, it may increase the asymptotic provision probability of socially efficient public goods from zero to one; second, it decreases the extent of use exclusions. If the regularity condition is violated, then the optimal solution replicates the separate provision outcome.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Efficient Mechanisms for Public Goods with Use Exclusions
By Peter Norman
-
An Efficiency Rationale for Bundling of Public Goods
By Hanming Fang and Peter Norman
-
By Hanming Fang and Peter Norman
-
Monopolistic Provision of Excludable Public Goods Under Private Information
-
Toward an Efficiency Rationale for the Public Provision of Private Goods
By Hanming Fang and Peter Norman
-
Portfolio Diversification and Value at Risk Under Thick-Tailedness
-
Optimal Provision of Multiple Excludable Public Goods
By Hanming Fang and Peter Norman
-
The Provision and Pricing of Excludable Public Goods: Ramsey-Boiteux Pricing Versus Bundling
-
A Note on Budget Balance Under Interim Participation Constraints: The Case of Independent Types
By Tilman Borgers and Peter Norman
-
Public Goods, Participation Constraints, and Democracy: A Possibility Theorem
By H. P. Gruner