THE PURE THEORY OF PUBLIC-GOODS - EFFICIENCY, DECENTRALIZATION, AND THE CORE

We extend the findings of Mas-Colell on valuation equilibria and the r elationship of cost-share equilibria with the core. We allow for any f inite number of private goods and a set of public projects without any structure. We show the two welfare theorems for valuation equilibrium , the inclusion of the set of cost-share equilibria in the core, and t he nonequivalence of these two sets for an economy with a finite numbe r of agents.