Template-Type: ReDIF-Paper 1.0
Title: The Equivalence of Core and Lindahl Equilibria in an Economy with Semi-Public Goods
Author-Name: Valery Vasil'ev
Author-Name: Shlomo Weber
Author-Name: Hans Wiesmeth
Author-Postal: 
Author-Phone: 
Author-Homepage: 
Classification-JEL: 022, 026
Keywords: 
Abstract: This paper examines a model of an infinite production economy with a 
 finite number of types of agents and semi-public goods, where utility of a 
 member of a coalition depends not only on the vector of public commodities 
 produced by this coalition, but also on the structure of the coalition. The 
 public goods are thus subjected to crowding and exclusion is possible. The 
 main purpose of the paper is then to derive necessary and sufficient 
 conditions on the degrees of congestion which guarantee the equivalence 
 between the core and the set of equal treatment Lindahl equilibria. It is 
 shown that the equivalence holds for economies satisfying standard 
 assumptions if and only if there are constant returns to group size for each 
 type of agents. The paper thus generalizes and completes other approaches to 
 core equivalence in a public goods context.
Series: Sonderforschungsbereich 303, University of Bonn, Germany
Length: 25 pages
Creation-Date: 1991-09
Revision-Date: 
Handle: RePEc:bon:bonsfb:200