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- W2085382615 abstract "Abstract We distinguish between absolute ability ( AATP ) to pay, which represents an absolute constraint on the amount that an individual can be charged, and relative ability to pay ( RATP ) as expressed by differential social welfare weights. We examine the implications of these two principles on free provision of public goods in the context of strategy-proof cost sharing mechanisms. We find that while the AATP considerations can lead to rich individuals being charged high prices, the high prices would be associated with the public good being provided free to fewer individuals. RATP considerations can lead to free provision of the public good to a significant fraction of the society but would imply an upper bound on the price that can be charged to any rich individual." @default.
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- W2085382615 date "2003-04-01" @default.
- W2085382615 modified "2023-09-27" @default.
- W2085382615 title "Strategy-proof cost sharing, ability to pay and free provision of an indivisible public good" @default.
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- W2085382615 doi "https://doi.org/10.1016/s0165-4896(03)00026-x" @default.
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