Abstract
I examine a standard public goods provision problem and show that a simple adaptation of the Jackson–Moulin mechanism (J. Econ. Theory57(1992), 125–140) to divisible public goods achieves the socially efficient outcome and implements a family of cost-sharing rules in undominated Nash equilibria of a two-stage game, when agents' benefits from public good consumption are linear. Agents know their own marginal benefits and at least two agents with positive marginal benefits know the aggregate marginal benefit. The planner, however, does not know agents' characteristics or aggregate marginal benefit.Journal of Economic LiteratureClassification Numbers: H41, C72, D78.
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