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- Title
On the Free Rider Problem in the M.D.P. Procedure.
- Authors
Henry, Claude
- Abstract
To ensure an efficient provision of public goods in an economy with both private and public goods, various scholars have proposed a planning procedure that will be called the M.D.P. procedure--which enjoys two important properties: 1) if the consumers involved in the procedure truthfully report their preferences, then limit point of the differential process which formalizes the dynamics of the procedure in an efficient allocation, i.e. a Pareto optimum; 2) if the quantities of public goods which are considered along the procedure are always strictly positive, then to report his preferences truthfully is at every step of the procedure the only maximum strategy for every consumers. The conjecture has been proved in sections of the paper even when it appears necessary to impose certain constraints on the way consumers are supposed to lie.
- Subjects
CENTRAL economic planning; CONSUMER behavior; CONSUMER profiling; ECONOMIC policy; CONSUMERS; PUBLIC goods; CONSUMPTION (Economics); ECONOMICS; INDIVIDUAL differences; CONSUMER attitudes
- Publication
Review of Economic Studies, 1979, Vol 46, Issue 2, p293
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2297052