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Incentives and public inputs Export

Journal of Public Economics, Vol. 4, No. 3. (August 1975), pp. 211-226.

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Considered in this paper is a mechanism to coordinate the decision to provide a public input to a group of firms designed to overcome the ‘free rider’ problem. The coordinating agent relies on information communicated by the firms and it is shown that the mechanism provides an incentive for each firm to send truthful information so that an optimal quantity of the public input will be provided.


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