Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/127399 
Year of Publication: 
2015
Series/Report no.: 
Discussion Paper Series No. 586
Publisher: 
University of Heidelberg, Department of Economics, Heidelberg
Abstract: 
Many mechanisms have been designed to solve the free-rider problem in public good environments. The designers of those mechanisms focused on good static equilibrium properties. In this paper, I propose a new mechanism for the provision of public goods that has good dynamic properties instead. The mechanism gives all agents the possibility to condition their contribution on the total level of contribution provided by all agents. Under a reasonable variant of Better Response Dynamics all equilibrium outcomes are Pareto efficient. This makes the mechanism particularly suited for repeated public good environments. In contrast to many previously suggested mechanisms, it does further not require an institution that has the power to enforce participation and/or transfer payments. Neither does it use any knowledge of agents preferences.
Subjects: 
Mechanism Design
Public Goods
Better Response Dynamics
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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