Optimal Provision of Multiple Excludable Public Goods
CFDP Revision Date
This paper studies the optimal provision mechanism for multiple excludable public goods when agents’ valuations are private information. For a parametric class of problems with binary valuations, we characterize the optimal mechanism, and show that it involves bundling. Bundling alleviates the free riding problem in large economies in two ways: ﬁrst, it can increase the asymptotic provision probability of socially eﬀicient public goods from zero to one; second, it decreases the extent of use exclusions.
Fang, Hanming and Norman, Peter, "Optimal Provision of Multiple Excludable Public Goods" (2003). Cowles Foundation Discussion Papers. 1717.