Surplus sharing with a two-stage mechanism

Citation
Tr. Kaplan et D. Wettstein, Surplus sharing with a two-stage mechanism, INT ECON R, 41(2), 2000, pp. 399-409
Citations number
17
Categorie Soggetti
Economics
Journal title
INTERNATIONAL ECONOMIC REVIEW
ISSN journal
00206598 → ACNP
Volume
41
Issue
2
Year of publication
2000
Pages
399 - 409
Database
ISI
SICI code
0020-6598(200005)41:2<399:SSWATM>2.0.ZU;2-Z
Abstract
In this article we consider environments where agents jointly produce a pri vate output good by contributing privately owned resources. An efficient ou tcome may not be realized due to strategic behavior and conflicting interes ts of the agents. We construct a two-stage mechanism, building on a Varian mechanism. The modified mechanism ensures an equilibrium for a large class of preferences and guarantees the feasibility of outcomes.