Abstract
We extend to multiple private commodities the seminal model by Bergstrom et al. (J Public Econ 29:25–49, 1986) on the private provision of public goods. Considering the relative value of the aggregate donations, we define a notion of equilibrium and show its existence. We analyze the effects of resource redistributions on the equilibrium outcome, identifying conditions that guarantee neutrality. We study some further properties of the contribution equilibrium, and provide a strategic market game approach, defining a sequence of non-cooperative games whose equilibria converge to an equilibrium of the economy.
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This work is partially supported by the Research Grant PID2022-136718NB-I00 (Ministerio de Ciencia e Innovación). It is also funded by national funds through the FCT - Fundação para a Ciência e a Tecnologia, I.P., under the scope of the projects UIDB/00297/2020 and UIDP/00297/2020 (Center for Mathematics and Applications).
We are very grateful to two anonymous referees since their concerns, comments, and suggestions have helped to improve this work. We also acknowledge Eduardo L. Giménez for his observations.
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Faias, M., Guevara-Velázquez, M. & Moreno-García, E. Contributing with private bundles to public goods. Econ Theory 77, 801–821 (2024). https://doi.org/10.1007/s00199-023-01511-2
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DOI: https://doi.org/10.1007/s00199-023-01511-2