This article investigates the informational requirements of resource allocation processes in pure exchange economies with consumption externalities. It is shown that the distributive Lindahl mechanism has a minimal informational size of the message space, and thus it is informationally the most...

This paper considers the problem of designing 'well-behaved' mechanisms whose Nash allocations coincide with Lindahl allocations in the presence of decreasing returns to scale technologies. The mechanism presented here is individually feasible, balanced, continuous, and differentiable around...