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Strategy-Proofness and Efficiency of Probabilistic Mechanisms for Excludable Public Good

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  • Kazuhiko Hashimoto
  • Kohei Shiozawa

Abstract

We study strategy-proof probabilistic mechanisms in a binary excludable public good model. We construct a new class of probabilistic mechanisms satisfying strategy-proofness, called mechanisms. We first show that the mechanisms are second-best efficient. Next, we identify the optimal mechanism with respect to the supremal welfare loss, and show that it improves the inefficiency of the equal cost sharing with maximal participation mechanism [Moulin (1994)] and the anonymous augmented serial mechanisms [Ohseto (2005)].

Suggested Citation

  • Kazuhiko Hashimoto & Kohei Shiozawa, 2018. "Strategy-Proofness and Efficiency of Probabilistic Mechanisms for Excludable Public Good," Working Papers e118, Tokyo Center for Economic Research.
    • Handle: RePEc:tcr:wpaper:e118
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    References listed on IDEAS

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