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Existence, Uniqueness And Some Comparative Statics For Ratio- And Lindahl Equilibria: New Wine In Old Bottles

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  • Wolfgang Buchholz
  • Richard Cornes
  • Wolfgang Peters

Abstract

We present a rigorous, yet elementary, demonstration of the existence of a unique Lindahl equilibrium under the assumptions that characterize the standard n-player public good model. Indeed, our approach, which exploits the aggregative structure of the public good model, lends itself to a transparent geometric representation. Moreover, it can handle the more general concept of the cost-share or ratio equilibrium. Finally, we indicate how it may be ex-ploited to facilitate comparative static analysis of Lindahl and cost share equilibria.

Suggested Citation

  • Wolfgang Buchholz & Richard Cornes & Wolfgang Peters, 2006. "Existence, Uniqueness And Some Comparative Statics For Ratio- And Lindahl Equilibria: New Wine In Old Bottles," Discussion Papers 06/08, University of Nottingham, School of Economics.
    • Handle: RePEc:not:notecp:06/08
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    1. Danziger, Leif, 1976. "A graphic representation of the Nash and Lindahl equilibria in an economy with a public good," Journal of Public Economics, Elsevier, vol. 6(3), pages 295-307, October.
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    More about this item

    Keywords

    Public goods; Lindahl equilibrium; ratio equilibrium.;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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