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Endogenous community formation and collective provision - A procedurally fair mechanism

Guth, Werner


A group of actors, individuals or firms, can engage in collectively providing projects which may be costly or generating revenues and which may benefit some and harm others. Based on requirements of procedural fairness, we derive a bidding mechanism determining endogenously who participates in collective provision, which projects are implemented, and the positive or negative payments due to the members as well as outsiders. The mechanism allows only for one community with more or less outsiders...[Show more]

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
Source: Journal of Economic Behavior and Organization
DOI: 10.1016/j.jebo.2014.01.005


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