Abstract
We introduce refund bonuses into the provision point mechanism. If a total contribution is less than the provision point, each contributor receives not only his contribution refunded but also a refund bonus the size of which is proportional to the contribution made. However, because of competition for refund bonuses the provision point is reached in equilibrium. Furthermore, the mechanism can uniquely implement the public good project with Lindahl prices. The mechanism also has other applications.
Original language | English |
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Pages (from-to) | 231-234 |
Number of pages | 4 |
Journal | Journal of Public Economics |
Volume | 120 |
Early online date | 30 Oct 2014 |
DOIs | |
Publication status | Published - 1 Dec 2014 |
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Robertas Zubrickas
- Department of Economics - Senior Lecturer
- Economic Theory
Person: Research & Teaching