| Abstract: | Summary. This paper deals with implementing the efficient level of public good provision in a dynamic setting. First, we prove that when the good is provided in several stages, no sequence of Groves' mechanisms guarantees that agents will reveal their true valuations as a dominant strategy. The contribution of this paper is the characterization of those mechanisms which guarantee truthful revelation in this environment.Received: 30 December 2001, Revised: 27 March 2003, JEL Classification Numbers: D61, D78, D82, H41.This paper has greatly benefited from the ideas and comments of Sandro Brusco, Luis Corchón and Roberto Burguet. I would also like to thank José Alcalde, Luis J. Alías, Javier López-Cuñat, Juan Vicente Llinares, Ashley Piggins, Juan Perote and Antonio Quesada for very helpful suggestions. I am also grateful to an anonymous referee whose suggestions aided the quality of exposition in the paper and led me to Proposition 4. |
