This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Microeconomics: Vol. 2 No. 4 (November 2010)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro Forthcoming Articles

Optimal Provision of Multiple Excludable Public Goods

Article Citation

Fang, Hanming, and Peter Norman. 2010. "Optimal Provision of Multiple Excludable Public Goods." American Economic Journal: Microeconomics, 2(4): 1-37.

DOI: 10.1257/mic.2.4.1

Abstract

This paper studies the optimal provision mechanism for multiple excludable public goods. For a class of problems with symmetric goods and binary valuations, we show that the optimal mechanism involves bundling if a regularity condition, akin to a hazard rate condition, on the distribution of valuations is satisfied. Relative to separate provision mechanisms, the optimal bundling mechanism may increase the asymptotic provision probability of socially efficient public goods from zero to one, and decreases the extent of use exclusions. If the regularity condition is violated, the optimal solution replicates the separate provision outcome for the two-good case. (JEL D82, H41)

Article Full-Text Access

Full-text Article

Additional Materials

Online Appendix (506.07 KB)

Authors

Fang, Hanming (U PA)
Norman, Peter (U NC)

JEL Classifications

D82: Asymmetric and Private Information
H41: Public Goods

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Microeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us