Lindahl pricing is a way to efficiently allocate these things, but requires knowledge of individuals'demand functions. That problem may be overcome with the Groves-Clarke mech
Lindahl pricing is a way to efficiently allocate these things, but requires knowledge of individuals'demand functions. That problem may be overcome with the Groves-Clarke mechanism, an auction systemfor these things where truthful bidding is the dominant strategy. The Samuelson condition says these thingsare provided efficiently when the sum of individual marginal rates of substitution equals the marginal rateof transformation compared to an arbitrary good. These are non-rival and also non-excludable, which canmake them subject to the free rider problem. 10 points, lighthouses are a frequently given example of whatkinds of goods, which may be paid for with taxes?
Lindahl pricing is a way to efficiently allocate these things, but requires knowledge of individuals'demand functions.
public goods