Equilibrium allocations of endowment-pretension games in public good economies

Abstract

In a public good economy where agents' preferences are known but endowments are private information, instituting an allocation rule and asking the agents their initial endowments induces an endowment-pretension game. We analyse the Nash equilibrium allocations of this game and discuss its welfare properties with reference to voluntary contributions allocations. © Springer-Verlag 2005.