On Sharing the Benefits of Communication
Efthymios Athanasiou, Santanu Dey, Giacomo Valletta
D70, D62, C60
Groves Mechanisms, Externality, Budget Surplus or Deficit, Pareto Undominated
Climate Change and Sustainable Development
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.