The Trouble With Groves: Revisiting the Classical Pure Public Good Problem
44 Pages Posted: 13 Jul 2018
Date Written: June 22, 2018
We discuss the problem of procuring a single pure public good under the assumption that preferences are quasilinear. We concentrate on the class of strategy-proof, anonymous and feasible mechanisms that are not dominated by another strategy-proof, anonymous and feasible mechanism. We identify reasonable mechanisms within this class. Our endeavor is motivated by the fact that Groves mechanisms, with the exception of the Pivotal mechanism, are typically dominated.
Keywords: Pure Public Good; Strategy-Proof Mechanisms; Decision Efficiency; Groves Mechanisms; Undominated Mechanisms
JEL Classification: D71; D82
Suggested Citation: Suggested Citation