We compare two pricing strategies -- buffet pricing and usage pricing -- of excludable public goods for social welfare maximization. Buffet pricing is better than usage pricing for low consumer heterogeneity, while the opposite holds for high consumer heterogeneity.

The case of China seems to present a counterexample to the literature on economic institutions as its private enterprises have achieved spectacular growth despite poor protection of private properties and difficulties in accessing external finance. In this study, we address this apparent puzzle...