A BEJTE Topics article.

Abstract

This paper characterizes the utility possibility frontier resulting in a model of private voluntary provision of a public good. It is shown that ex-ante lotteries over resource distributions among the agents can be Pareto improving. A corollary is that an equal distribution of resources among the agents, or any distribution where all agents contribute in equilibrium, is always Pareto dominated by a lottery between two unequal distributions.

Submitted: July 25, 2005 · Accepted: April 14, 2006 · Published: July 13, 2006

Originally published in Topics in Theoretical Economics.

Recommended Citation

Karaivanov, Alexander (2006) "Pareto Improving Lotteries and Voluntary Public Goods Provision," Topics in Theoretical Economics: Vol. 6 : Iss. 1, Article 9.
Available at: http://www.bepress.com/bejte/topics/vol6/iss1/art9