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Solutions to Public Goods Problem

The presence of public goods yields a supply side provision problem because of its distinctive features. Arguably for this reason many public goods are provided by the government and financed from the federal, state, or local budgets. The following section highlights some issues connected with the provision of public goods and proposed solutions to those problems.

  • Pareto Efficient Solution, Private Provision, and Free Riding
  • Voluntary Contribution Mechanism
  • Lindahl Equilibrium
  • Groves-Ledyard Mechanism
  • Walker's Mechanism
  • Smith's Auction

     

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