Double implementation of the ratio correspondence by a market mechanism

Luis Corchon, Simon Wilkie

Research output: Contribution to journalArticleResearchpeer-review

20 Citations (Scopus)

Abstract

To overcome deficits of the Lindahl solution concept when the economy does not exhibit constant returns to scale, Kaneko (1977a) introduced the concept of a. ratio equilibrium. The ratio correspondence selects for each economy its set of ratio equilibrium allocations. In this paper we provide a simple market game that double implements the ratio correspondence in Nash and strong equilibria.

Original languageEnglish
Pages (from-to)325-337
Number of pages13
JournalReview of Economic Design
Volume2
Issue number1
DOIs
Publication statusPublished - Dec 1996
Externally publishedYes

Keywords

  • Nash implementation
  • Public goods
  • Ratio equilibrium

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