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A One-Point Solution Concept for the Provision of a Public Good

Published online by Cambridge University Press:  17 August 2016

Ping-Yuan Yen
Ping-Yuan Yen*
Affiliation:
Chung-Hsing University, Taiwan
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Summary

The paper intends first to develop a solution mechanism which associates with each economy with a public good a feasible allocation; then, to set up a set of axioms that can make a solution mechanism acceptable in some sense for each agent sharing the cost. It is found finally in the paper that a solution concept, called the Chander dynamic process in which costs are instantaneously shared proportionally to individual marginal rates of substitution, satisfies almost all the required axioms.

Résumé

Résumé

Le but premier de cet article est de construire un mécanisme sélectif associant à différentes économies comportant un bien public une allocation réalisable, et ensuite de fixer un ensemble d'axiomes permettant de rendre ce mécanisme acceptable aux agents participant au coût de production du bien. L'article montre aussi que.presque tous ces axiomes sont satisfaits par le mécanisme appelé procédure dynamique de Chandler associant instantanément les coûts en proportion des taux marginaux de substitution des individus.

Keywords

022022
Type
Research Article
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 59 , Issue 3 , 1993 , pp. 365 - 377
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1993 

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Footnotes

*

This article is based on the public lecture given by the author at the Université Catholique de Louvain at his thesis defense for the Doctorat en Sciences Economiques on 19 September 1991. For their many valuable comments the author owes a great deal to his supervisor Henry Tulkens, as well as the other members of the jury, Claude d'Aspremont, Parkash Chander, Bernard Cornet and Maurice Marchand.

References

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