Bargaining over Public Goods
Journal article: In a simple public good economy, we propose a natural bar- gaining procedure, the equilibria of which converge to Lin- dahl allocations as the cost of bargaining vanishes. The pro- cedure splits the decision over the allocation in a decision about personalized prices and a decision about output levels for the public good. Since this procedure does not assume price-taking behavior, it provides a strategic foundation for the personalized taxes inherent in the Lindahl solution to the public goods problem.
Author(s)
Julio Davila, Jan Eeckhout, C. Martinelli
Journal
- Journal of Public Economic Theory
Date of publication
- 2009
Keywords
- Public goods
- Alternating offers bargaining
Pages
- 927-945
URL of the HAL notice
Version
- 1
Volume
- 11