The model identifies the quality of a network product with the number of consumers using it. Hence, the producer cannot unilaterally control the quality of his product. Using the preference specification of vertical quality differentiation, it is shown that the largest network produced will be...

This paper recommends a system of rewards for public officials which is linearly related to the performance of the official. The main advantage of such a system of compensation is that it serves as a regular ‘self checking’ of the performance of an official and it reduces the need for a...

Shitovitz and Spiegel (1998) demonstrated that in pure public good economies, for some consumers the Lindahl consumption bundles can be inferior (utility-wise) to their Cournot-Nash allocation. In this paper, we prove that in any finite pure public good economy there exists a core allocation...