An Allocation Rule with Wealth-Regressive Tax Rates
Authors:
M. Remzi Sanver
Affiliation:
İstanbul Bilgi University
Abstract:
We introduce a public good allocation rule whose direct implementation by asking agents their endowments leads to Nash equilibrium outcomes—always Pareto dominating voluntary contributions outcomes. Although the Nash equilibrium allocations induced by this rule are not Pareto optimal in general, they are so in two-person economies.