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| Author: | Hellwig, M. F. |
| Title: | The provision and pricing of excludable public goods: Ramsey-Boiteaux pricing versus budling |
| Journal: | Journal of Public Economics
2007 : APR, VOL. 91:3-4, p. 511-540 |
| Index terms: | bundling pricing public goods |
| Language: | eng |
| Abstract: | The aim of this article is to study the relationship between Bayesian mechanism design and the Ramsey-Boiteaux approach to the provision and pricing of excludable public goods. The article claims that for a large economy with private information about individual preferences, the two approaches are shown to be equivalent if in addition to incentive compatibility and participation constraints, the final allocation of private-good consumption and admission tickets to public goods satisfies a condition of renegotiation proofness. |
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