On Sharing the Benefits of Communication
Data
28.05.2012
28.05.2012
Autori
Efthymios Athanasiou, Santanu Dey, Giacomo Valletta
Codice JEL
D70, D62, C60
D70, D62, C60
Parole chiave:
Groves Mechanisms, Externality, Budget Surplus or Deficit, Pareto Undominated
Groves Mechanisms, Externality, Budget Surplus or Deficit, Pareto Undominated
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
We put forward a model of private goods with externalities. Agents derive benefit from communicating with each other. In order to communicate they need to have a language in common. Learning languages is costly. In this setting no individually rational and feasible Groves mechanism exists. We characterize the best-in-class feasible Groves mechanism and the best-in-class individually rational Groves mechanism.