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A new mechanism to implement the Lindahl equilibriums (In French)

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  • Sébastien ROUILLON

Abstract

This paper presents a new economic mechanism, such that the associated game form implements Lindahl equilibria as Nash equilibria. Each player sends a 2-dimensional message, in order to tell his marginal propensity to pay and his demand for the public good. At a Nash equilibrium, the players directly and honestly reveal data defining a Lindahl equilibrium and the mechanism implements the corresponding allocation. In a quasi-linear economy, formalizing out-of-equilibrium behaviours of the players as a gradient process, the unique stationary point of this process is a Nash equilibrium of the game and it is shown to be globally stable.

Suggested Citation

  • Sébastien ROUILLON, 2009. "A new mechanism to implement the Lindahl equilibriums (In French)," Cahiers du GREThA (2007-2019) 2009-09, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2009-09
    as

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    File URL: http://cahiersdugretha.u-bordeaux.fr/2009/2009-09.pdf
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    References listed on IDEAS

    as
    1. Groves, Theodore & Ledyard, John O, 1977. "Optimal Allocation of Public Goods: A Solution to the "Free Rider" Problem," Econometrica, Econometric Society, vol. 45(4), pages 783-809, May.
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    6. Yan Chen, 2005. "Dynamic Stability of Nash-Efficient Public Goods Mechanisms: Reconciling Theory and Experiments," Springer Books, in: Amnon Rapoport & Rami Zwick (ed.), Experimental Business Research, chapter 0, pages 185-200, Springer.
    7. Yan Chen & Fang-Fang Tang, 1998. "Learning and Incentive-Compatible Mechanisms for Public Goods Provision: An Experimental Study," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 633-662, June.
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    More about this item

    Keywords

    Public good; Lindalh equilibrium; Economic mechanism;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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