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Neutral Public Good Mechanisms

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  • Jin Yeub Kim

    (Yonsei Univ)

Abstract

In this paper, I characterize neutral mechanisms for the provision of a public good. I show that neutral mechanisms form a reasonable set of predictions for mechanism selection in public goods problems: Such predictions are sufficiently sharp, robust to a perturbation of the information structure at the time of selection, and invulnerable to the possibility of information leakage during the selection process. I also illustrate that neutral mechanisms have the desirable properties of both efficiency and equity, and can be conveniently computed by the tractable set of conditions. These results are shown to have interesting implications for the analysis of ex ante and interim incentive efficient mechanisms for public goods problems.

Suggested Citation

  • Jin Yeub Kim, 2019. "Neutral Public Good Mechanisms," Working papers 2019rwp-159, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2019rwp-159
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public goods; Mechanism design; Neutral optimum; Interim efficiency; Ex ante efficiency; Almost ex ante stage;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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