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Equal Sacrifice and Fair Burden-Sharing in a Public Goods Economy

Buchholz, Wolfgang ; Peters, Wolfgang



Zusammenfassung

Applying a willingness-to-pay approach known from contingent valuation in environmental economics, we develop an ordinally based measure for the size of individual sacrifice that is connected with an agent's contribution to a public good. We construct a selection mechanism that picks the unique efficient solution among all allocations that have an equal sacrifice as defined in this way. We show ...

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