Abstract
A discrete public good is characterized by a threshold production function: the good is provided if a certain number of contributors is reached. I consider a Bayesian framework where an individual's cost associated with his participation in the provision of a public good is private information. An efficient allocation mechanism is constructed when the outside option-available to individuals refusing to participate in the mechanism-is zero utility, and also for uniform uncertainty when the outside option is either voluntary contribution or forced contribution.
Original language | English |
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Pages (from-to) | 877-897 |
Journal | International Economic Review |
Volume | 35 |
Issue number | 4 |
State | Published - 1994 |