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Voting and optimal provision of a public good

Authors :
Lin Zhou
Ran Shao
Source :
Journal of Public Economics. 134:35-41
Publication Year :
2016
Publisher :
Elsevier BV, 2016.

Abstract

In this paper, we study the optimal provision of a costly public good using an average efficiency criterion. For every fixed cost, we identify a quota mechanism as the optimal mechanism among those that are dominant-incentive-compatible, deficit-free and kind. Moreover, we also consider the asymmetric case and demonstrate that a committee mechanism is optimal for a large class of mechanisms. In particular, this mechanism dominates all VCG (pivotal) mechanisms.

Details

ISSN :
00472727
Volume :
134
Database :
OpenAIRE
Journal :
Journal of Public Economics
Accession number :
edsair.doi...........de32a3902d8e436830730c9d5761b0d0
Full Text :
https://doi.org/10.1016/j.jpubeco.2015.12.006