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Lindahl Mechanisms and Free Riders

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  • Bailey, Martin J

Abstract

Several authors have proposed mechanisms whose Nash-equilibria yield Lindahl tax allocations; however, as is well known, so does the Lindahl procedure with an auctioneer. Moreover, the game forms of all these mechanisms, and of any as yet undiscovered such mechanisms, all have the same normal form as does the Lindahl procedure without an auctioneer. The manipulative Nash equilibria are consequently the same for all these mechanisms, so that all have the traditional free-rider problem and all have the same outcome under strategic behavior. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Bailey, Martin J, 1994. "Lindahl Mechanisms and Free Riders," Public Choice, Springer, vol. 80(1-2), pages 35-39, July.
    • Handle: RePEc:kap:pubcho:v:80:y:1994:i:1-2:p:35-39
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    Cited by:

    1. Van Essen, Matthew J., 2008. "A Simple Supermodular Mechanism that Implements Lindahl Allocations," MPRA Paper 12781, University Library of Munich, Germany.
    2. William D. Gerdes, 1998. "A Case for Private Provision but Collective Ownership of Public Goods," The American Economist, Sage Publications, vol. 42(1), pages 90-94, March.

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