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A simple(r) Lindahl solution to the provision of public goods with warm-glow: Efficiency and implementation

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  • Carvajal, Andrés
  • Song, Xinxi

Abstract

We provide a simple(r) solution to the problem of efficiently providing public goods in a warm-glow economy. Compared with Allouch (2013), our solution is closer to Lindahl (1958), which requires only one personalized price for each consumer. This innovation is important in that it makes the techniques developed to deal with the pure public goods provision applicable to the warm-glow case. As an application, we show that under our solution concept, the implementation mechanism of Tian (1989) can be modified to implement Lindahl allocations.

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  • Carvajal, Andrés & Song, Xinxi, 2022. "A simple(r) Lindahl solution to the provision of public goods with warm-glow: Efficiency and implementation," Economics Letters, Elsevier, vol. 211(C).
    • Handle: RePEc:eee:ecolet:v:211:y:2022:i:c:s0165176521004717
    DOI: 10.1016/j.econlet.2021.110231
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    References listed on IDEAS

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    1. Carvajal, Andrés & Song, Xinxi, 2022. "Implementing Lindahl allocations in a warm-glow economy," Economics Letters, Elsevier, vol. 217(C).

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    More about this item

    Keywords

    Public goods; Warm-glow; Efficiency; Implementation;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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