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Voluntary public good provision with private information using order statistics

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We study the voluntary provision of a public good with private information when inputs are not perfectly substitutable. Modeling the production function as a mixture of order statistics of individual… Click to show full abstract

We study the voluntary provision of a public good with private information when inputs are not perfectly substitutable. Modeling the production function as a mixture of order statistics of individual efforts, we bridge the extreme best-shot and weakest-link technologies, passing through summation, in a tractable framework. In contrast with existing predictions, increasing complementarity results in increased public good provision, if the marginal cost of effort rises sufficiently fast.

Keywords: provision; order statistics; good provision; private information; public good

Journal Title: Economics Letters
Year Published: 2017

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