November 28, 2010

Cooperative Provision of Indivisible Public Goods

by Pierre Dehez

- A community faces the obligation of providing an indivisible public good that each member is able to provide at a certain cost. The solution is to rely on the player who can do it at the lowest cost with due compensations from the other players. We model this problem as a cost sharing game. It turns out to be a kind of reverse airport game whose core has a regular structure. This is the main result of the paper.

Dehez, P. (2010). "Cooperative Provision of Indivisible Public Goods." CORE Discussion Paper No. 2010.26, Nov 2010.