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Private Provision of Public Goods under Delegated Common Agency

Author

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  • Tsung-Sheng Tsai

    (Institute of Economics, Academia Sinica)

Abstract

This paper considers a delegated common agent who produces a public good with private information regarding his cost. We show that truthful strategies are not optimal for principals, and that the agent enjoys some rent in equilibrium. It is not always that all principals make contributions: the number of contracts with positive contributions accepted by the agent in equilibrium is non-increasing as the agent becomes less efficient.

Suggested Citation

  • Tsung-Sheng Tsai, 2005. "Private Provision of Public Goods under Delegated Common Agency," Economics Bulletin, AccessEcon, vol. 8(13), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-05h00093
    as

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    References listed on IDEAS

    as
    1. David Martimort, 1996. "Exclusive Dealing, Common Agency, and Multiprincipals Incentive Theory," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 1-19, Spring.
    2. Martimort David & Stole Lars, 2003. "Contractual Externalities and Common Agency Equilibria," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-40, July.
    3. repec:adr:anecst:y:1992:i:28:p:01 is not listed on IDEAS
    4. B. Douglas Bernheim & Michael D. Whinston, 1986. "Menu Auctions, Resource Allocation, and Economic Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(1), pages 1-31.
    5. Mark Bagnoli & Barton L. Lipman, 1989. "Provision of Public Goods: Fully Implementing the Core through Private Contributions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(4), pages 583-601.
    6. Laussel, Didier & Le Breton, Michel, 1998. "Efficient Private Production of Public Goods under Common Agency," Games and Economic Behavior, Elsevier, vol. 25(2), pages 194-218, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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