Welcome to the new version of CaltechAUTHORS. Login is currently restricted to library staff. If you notice any issues, please email coda@library.caltech.edu
Published September 6, 2017 | Submitted
Report Open

Incentives and a Process Converging to the Core of a Public Goods Economy

Abstract

The paper considers economies involving one public good, one private good, and constant returns to scale. It is shown that the process proposed earlier in Chander (1983, 1987a, and 1987b) always converges to an allocation which is in the core of the economy. This is then interpreted as an incentive property of the process and it is shown that there exists no process which always converges to the core and in which truth-telling constitutes a dominance equilibrium of the 'local incentive game'.

Additional Information

I would like to thank Jacques Dreze and Henry Tulkens for their helpful suggestions. Thanks are also due to Jean-Jacques Laffont for his comments. I have also benefited from a presentation at the Caltech Workshop.

Attached Files

Submitted - sswp677.pdf

Files

sswp677.pdf
Files (407.5 kB)
Name Size Download all
md5:a5bd39586ca20663d08a1180bb098a2c
407.5 kB Preview Download

Additional details

Created:
August 19, 2023
Modified:
January 14, 2024