Athanasiou, Efthymios; Dey, Santanu; Valleta, Giacomo - Fondazione ENI Enrico Mattei (FEEM) - 2012
We put forward a model of private goods with externalities. Agents derive benefit from communicating with each other. In order to communicate they need to have a language in common. Learning languages is costly. In this setting no individually rational and feasible Groves mechanism exists. We...