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| Nizar Allouch |
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| ''A core-equilibrium
convergence in a public goods economy'' |
| ( 2010, Vol. 12 No.4 ) |
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| This paper deals with a core-equilibrium equivalence in an economy
with public goods where preferences of consumers display warm glow
effects. We demonstrate that provided that each consumer becomes
satiated to other consumers' provision, it holds that for a
sufficiently large economy the core shrinks and the set of
Edgeworth allocations is nonempty. Moreover, we show that an
Edgeworth allocation could be decentralized as a warm glow
equilibrium. |
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| Keywords: competitive equilibrium, warm glow, public
goods, Edgeworth, core, decentralization. |
JEL: H4 - Publicly Provided Goods: General
D5 - General Equilibrium and Disequilibrium: General |
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| Manuscript Received : Feb 06 2009 | | Manuscript Accepted : Mar 08 2012 |
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