Counting Groves-Ledyard Equilibria via Degree Theory
dc.contributor.author | Bergstrom, Theodore C. | en_US |
dc.contributor.author | Simon, Carl P. | en_US |
dc.contributor.author | Titus, Charles J. | en_US |
dc.date.accessioned | 2013-11-14T23:23:06Z | |
dc.date.available | 2013-11-14T23:23:06Z | |
dc.date.issued | 1983-10 | en_US |
dc.identifier.other | MichU DeptE CenREST RSQE D49 | en_US |
dc.identifier.other | H410 | en_US |
dc.identifier.other | D310 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/101114 | |
dc.description.abstract | We study the Groves-Ledyard mechanism for determining optimal amounts of public goods in economies whose agents have the most general class of preferences for which a Pareto amount of public goods can be computed independently of income distribution. We use degree theory on affine spaces to show that the number of equilibria in such economies grows exponentially as the number of agents in the economy increases. The large number of equilibria in such simple economic models raises doubts as to whether the Groves-Ledyard mechanism is a workable solution to the Free Rider Problem since individuals may have incentives to falsify their preferences in order to drive the adjustment process to a preferred Nash equilibrium. | en_US |
dc.description.sponsorship | Center for Research on Economic and Social Theory, Research Seminar in Quantitative Economics, Department of Economics, University of Michigan | en_US |
dc.relation.ispartofseries | Discussion Paper | en_US |
dc.subject | Groves-Ledyard | en_US |
dc.subject | Degree Theory | en_US |
dc.subject | Free Rider Problem | en_US |
dc.subject.other | Public Goods | en_US |
dc.subject.other | Personal Income, Wealth, and Their Distributions | en_US |
dc.title | Counting Groves-Ledyard Equilibria via Degree Theory | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Social Sciences | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/101114/1/ECON097.pdf | |
dc.owningcollname | Economics, Department of - Working Papers Series |
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