The Core Involving Public Goods Revisited: A Diagrammatical Analysis
23 Pages Posted: 22 Apr 2012
Date Written: April 13, 2012
Using a diagram called a "Kolm triangle" adopted in Kolm (197'7, the important issues of 1) Pareto efficiency and the core, and 2) Lindahl equilibrium and the core in the resource allocation problem involving public goods analyzed by Foley (197'7 and Nikaido (1976) can be illustrated merely using plane figures. One advantage of using such a diagrammatical method is that it allows an intuitive understanding of the salient problems of the core without using highly complicated mathematics to any degree.
Keywords: public goods, the Kolm triangle, core, the Lindahl equilibrium, coalition
JEL Classification: H41, H49, H44, D51
Suggested Citation: Suggested Citation