The provision point mechanism with refund bonuses

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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 languageEnglish
Pages (from-to)231-234
Number of pages4
JournalJournal of Public Economics
Volume120
Early online date30 Oct 2014
DOIs
Publication statusPublished - 1 Dec 2014

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