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Three public goods and lexicographic preferences: replacement principle

Author

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  • Lars Ehlers

    (Université de Montréal)

Abstract

We study the problem of locating multiple public goods for a group of agents with single-peaked preferences over an interval. An alternative specifies for each public good a location. In Miyagawa (Mechanisms for providing a menu of public goods. University of Rochester., 1998) each agent consumes only his most preferred public good without rivalry. We extend preferences lexicographically and characterize the class of rules satisfying Pareto-optimality and replacement-domination. We show that for three public goods, this results in a very similar characterization to Miyagawa (Social Choice Welfare 18:527–541, 2001a): only the two rules which either always chooses the left-most Pareto-optimal alternative or always chooses the right-most Pareto-optimal alternative satisfy these properties. This is in contrast to Ehlers (J Math Econom 37:1–15, 2002) who showed that for two goods the corresponding characterization is substantially different to Miyagawa (Social Choice Welfare 18:527–541, 2001a).

Suggested Citation

  • Lars Ehlers, 2022. "Three public goods and lexicographic preferences: replacement principle," Review of Economic Design, Springer;Society for Economic Design, vol. 26(3), pages 367-384, September.
    • Handle: RePEc:spr:reecde:v:26:y:2022:i:3:d:10.1007_s10058-022-00306-6
    DOI: 10.1007/s10058-022-00306-6
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Single-peaked preferences; Multiple public goods; Lexicographic; Replacement-domination;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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