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Lindahl's solution and values for a public-goods example
Authors:Robert W. Rosenthal
Affiliation:Northwestern University, Evanston, Ill. 60201, U.S.A.
Abstract:An example of an economy with a public good is presented with a non-atomic measure space of agents and money (transferable utility medium). Three solutions are computed: the Lindahl solution, the Shapley value, and the Harsanyi-Selten value. The three are found to differ significantly in their assignment of the societal benefits attributable to the presence of the public good.
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