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We analyze the costs and benefits of using social image to foster virtuous behavior. A Principal seeks to motivate reputation-conscious agents to supply a public good. Each agent chooses how much to contribute based on his own mix of public-spiritedness, private signal about the value of the...
Persistent link: https://www.econbiz.de/10011476544
We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...
Persistent link: https://www.econbiz.de/10013133557
provision mechanism weakly exceeds a prespecified ratio alpha. We call this requirement "alpha proportional individual … in a mechanism. We find that as the economy becomes large, an agent's influence in any anonymous mechanism converges to … zero, and any interim incentive compatible anonymous mechanism must converge to a constant mechanism. We obtain the uniform …
Persistent link: https://www.econbiz.de/10013085858
We characterize the Pareto-frontier in a simple Mirrleesian model of income taxation. We show how the second-best frontier which incorporates incentive constraints due to private information on productive abilities relates to the first-best frontier which takes only resource constraints into...
Persistent link: https://www.econbiz.de/10013075665
priori unknown. The analysis is based on a mechanism design approach that imposes a requirement of robustness with respect to …
Persistent link: https://www.econbiz.de/10013158141
use a mechanism design approach to solve for the optimal utilitarian provision rule. The relevant incentive constraints …
Persistent link: https://www.econbiz.de/10012732843
sense that in order for a public good provision mechanism to be implemented, it must first be approved by agents under a … prespecified voting rule. We find that as long as the voting rule is not the unanimity rule, the principal can propose a mechanism … functioning of the mechanism we propose. We discuss the optimal voting rule in such situations …
Persistent link: https://www.econbiz.de/10012952756
.e. resources to pay for all the public goods in the bundle. The analysis focuses on the all-or-nothing-mechanism: Expand provision … all-outcome converges to one as the capacity becomes unbounded. We also provide conditions under which the all-or-nothing-mechanism …
Persistent link: https://www.econbiz.de/10012908660
implemented by a simple voting mechanism. With more public-good provision levels, more complicated mechanisms are required, but …
Persistent link: https://www.econbiz.de/10013014227
We examine the private provision of a public good whose level is determined by the least contribution of individual group members. Nash equilibrium can be efficient when the game is one of full information. This paper introduces private information about the costs of effort and characterizes...
Persistent link: https://www.econbiz.de/10013055272