IMPLEMENTATION OF THE THOMPSON MECHANISM

This paper reconsiders the largely overlooked Thompson insurance mecha nism for public choice. The mechanism's apparent defects can be remedi ed by a multi-part mechanism that generates necessary information and corrects potential errors. The added parts are (a) a sample of the pop ulation of eligible voters, who prepare a program for all voters' appr oval, and (b) the Vickrey-Clarke-Groves pivot mechanism. One can use c lassical statistical methods to draw valid inferences from a populatio n sample about the entire electorate, preserving incentive compatibili ty and permitting efficient outcomes.