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The theory of public goods: Misplaced emphasis?
Authors:Leif Johansen
Institution:Institute of Economics, University of Oslo, Oslo, Norway
Abstract:The note takes up for critical examination the tendency in the modern theory of public goods to emphasize the problem of correct revelation or concealment of preferences. It is argued that a strategy which consists in playing down one's preferences for a public good in order to get a lower share in the costs of providing the good is not likely to succed in an open political decision-making process involving elected representatives. This conclusion is supported by the fact that there seems to be little empirical evidence which shows the importance of the preference revelation issue.
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