{"title":"CvdN Equilibrium and Share Equilibrium in Local Public Good Economies","authors":"Nathan W. Chan, Anne van den Nouweland","doi":"10.1111/jpet.70030","DOIUrl":"https://doi.org/10.1111/jpet.70030","url":null,"abstract":"<p>CvdN equilibrium and share equilibrium are both extensions of the cost-shares-based ratio equilibrium for global public good economies to local public good economies. CvdN equilibrium and share equilibrium differ in terms of the stability requirements for equilibrium jurisdictions. While share equilibrium keeps agents' relative cost shares fixed across jurisdictions and allows each agent to consider unilateral moves to alternative jurisdictions, CvdN equilibrium employs the use of share functions that allow for equilibrium adjustments of relative shares in each jurisdiction and requires the agreement of all agents in alternative jurisdictions. Despite these differences, we demonstrate that CvdN equilibrium extends share equilibrium: every arrangement of an economy that is supported in share equilibrium is also a CvdN equilibrium. However, the reverse is not true and CvdN equilibrium may exist when share equilibrium does not. Thus, CvdN equilibrium provides predictions in more economies and does not contradict share equilibrium when it exists.</p>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jpet.70030","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143852702","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Leadership in Public Good Games and Private Information on Own Social Value Orientation","authors":"Edward Cartwright, Yidan Chai, Lian Xue","doi":"10.1111/jpet.70026","DOIUrl":"https://doi.org/10.1111/jpet.70026","url":null,"abstract":"<div>\u0000 \u0000 <p>We explore whether information on one's own social value orientation (SVO) impacts contributions in a public good game with leadership by example. In doing so, we compare the predictions of a model of belief-based preferences, where payoffs depend on first- and second-order beliefs on the contributions of others, and a model of internalized descriptive norms, where payoffs depend on deviation from an empirical norm. We argue that if pro-social behavior is driven by belief-based preferences, then private information on SVO should not impact contributions, but if the behavior is driven by internalized descriptive norms, then information on its own SVO should impact contributions. We report an experiment with three treatments: no information on SVO, binary information whether pro-self or pro-social, and SVO indicated on a scale from very pro-social to very pro-self. We observe no effect of information on contributions. This finding is inconsistent with internalized descriptive norms. We find that contributions are highest with a pro-social leader.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143831156","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Delegation as a Signal: Implicit Communication With Full Cooperation","authors":"Joanna Franaszek","doi":"10.1111/jpet.70028","DOIUrl":"https://doi.org/10.1111/jpet.70028","url":null,"abstract":"<div>\u0000 \u0000 <p>I examine the issue of implicit signaling of inexpressible types through delegation in a communication game with perfectly aligned preferences, two-sided private information, and communication frictions. A principal consults an agent to choose one of two actions. The principal has some tacit knowledge, which he cannot communicate, and may acquire some imperfect, costly signal about the state of the world. After observing the signal, the principal may choose to act or delegate to the agent, who observes the state of the world perfectly. Even if the principal's information acquisition and the signal are unobservable, the delegation, combined with private information, allows the agent to extract some information about the principal's tacit knowledge. I show that for a large class of parameters there exists an equilibrium, in which the agent (upon delegation) can correctly understand “cues” and tailor the action to the principal's needs. In particular, the agent's decision may be non-monotone in the state of the world.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143831155","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Dynamic Volunteer's Dilemma With Procrastinators","authors":"Yixuan Shi","doi":"10.1111/jpet.70027","DOIUrl":"https://doi.org/10.1111/jpet.70027","url":null,"abstract":"<p>Only one trip planner is needed for a group of friends to enjoy a pleasant trip and only one country is needed to coordinate on international talks that can be beneficial for all participating countries. We study a dynamic volunteering dilemma game in which two players choose to volunteer or wait given there have not been any volunteering actions in the past. The players can be procrastinators and the benefits of volunteering arrive later than the costs. We fully characterize the stationary Markov Strotz-Pollak equilibria. When the cost of volunteering is sufficiently small or agents' present-bias parameters are sufficiently close, there always exists an equilibrium in which both players randomize. This equilibrium features stochastic delay, and the delay is exacerbated if one or both agents become more present-biased. However, if the agents differ significantly in their present-bias parameters, this difference may act as a 'natural coordination device' and the unique stationary equilibrium predicts that only the less severe procrastinator volunteers, and this may result in an even quicker provision compared with the case of two exponential discounters.</p>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jpet.70027","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143809457","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Finding Out Who You Are: A Self-Exploration View of Education","authors":"Sungmin Park","doi":"10.1111/jpet.70023","DOIUrl":"https://doi.org/10.1111/jpet.70023","url":null,"abstract":"<p>I study the optimal design of information in education. Students in my model have different priors about their talents and update their beliefs after receiving noisy signals about themselves. I show that the socially optimal signal structure depends only on the average priors of the participating students. In particular, an optimal structure encourages a career in which the average participant has a comparative advantage. In an extended model with human capital accumulation, optimal education targets the participants who respond most sensitively to information.</p>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/jpet.70023","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143770441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Subir K. Chakrabarti, Alexander Shapoval, Shlomo Weber
{"title":"Games of Social Interactions With Externalities","authors":"Subir K. Chakrabarti, Alexander Shapoval, Shlomo Weber","doi":"10.1111/jpet.70021","DOIUrl":"https://doi.org/10.1111/jpet.70021","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper studies a class of games in which players' payoffs explicitly depend on their intrinsic preferences over the set of available alternatives, level of social interaction and the global influence of the aggregate societal choices. Using the potential functions approach, we examine the conditions under which the games admit a Nash equilibrium in pure strategies with a special emphasis on the role of social interactions. The existence results are then applied to examine the welfare consequences of the introduction of common goods and the adoption of new technologies.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143717295","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Intermediate Condorcet Winners and Losers","authors":"Salvador Barberà, Walter Bossert","doi":"10.1111/jpet.70024","DOIUrl":"https://doi.org/10.1111/jpet.70024","url":null,"abstract":"<div>\u0000 \u0000 <p>The conditions of strong Condorcet winner consistency and strong Condorcet loser consistency are, in essence, universally accepted as attractive criteria to evaluate the performance of social choice functions. However, there are many situations in which these conditions are silent because such winners and losers may not exist. Hence, weakening these desiderata to extend the domain of profiles where they apply is an appealing task. Yet, the often-proposed and accepted weak counterparts of these properties suffer from the shortcoming that it is possible for all weak Condorcet winners to be weak Condorcet losers at the same time, thus leading to contradictory recommendations regarding their use as normative criteria. After arguing that this anomaly is pervasive, even in the presence of substantial and important domain restrictions, we propose to use intermediate notions of Condorcet-type winners and losers that are between these two extremes: their associated consistency requirements share the intuitive appeal of strong Condorcet winner consistency and strong Condorcet loser consistency and avoid the contradictory recommendations that may derive from the double identification of candidates as being weak Condorcet winners and losers at the same time. We examine the extent to which our intermediate consistency conditions are compatible with various additional attractive normative criteria. Finally, we introduce a class of social choice functions that are consistent with the recommendations of our new proposals and can be extended to the universal domain through the lexicographical use of complementary choice criteria, in the spirit of previous approaches by noted authors like Pierre Daunou and Duncan Black.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143717294","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"School Segregation and Outside Options","authors":"Sumeyra Akin","doi":"10.1111/jpet.70025","DOIUrl":"https://doi.org/10.1111/jpet.70025","url":null,"abstract":"<div>\u0000 \u0000 <p>We study an allocation problem in which students share school preferences but differ in their outside options. We examine the ex-ante Pareto efficient (and weakly fair) allocations. Their main qualitative property is positive sorting; students with higher outside options are assigned to better schools. This result points out the tension between the policy goals of desegregation and efficiency and cautions policymakers about the difficulty of aligning these two objectives.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143689910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Equal Income Maximize Social Welfare When Multiple Pure Public Goods Are Privately Provided?","authors":"Jun-ichi Itaya, Atsue Mizushima, Gareth Myles","doi":"10.1111/jpet.70016","DOIUrl":"https://doi.org/10.1111/jpet.70016","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper analyzes the relationship between income distribution and social welfare when multiple pure public goods are privately provided. With a single public good and identical preferences, an increase in income inequality raises social welfare when it reduces the set of contributors so equality cannot be social optimal. We explore how this result is modified when there are multiple privately-provided public goods. It is shown that regions of neutrality alternate with regions of non-neutrality as income distribution is varied. In particular, in the setting of multiple privately-supplied public goods with non-idential preferences a region of non-neutrality emerges when individuals contribute to different public goods or when only one individual contributes. Moreover, social welfare will always be maximized by an income distribution located in a region of non-neutrality. This result implies that social welfare has local maxima at income distributions with inequality as well as around the equal income distribution. We also explore how the optimal extent of inequality is dependent on preference parameters.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143689911","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Condorcet Was Wrong, Pareto Was Right: Families, Inheritance and Inequality","authors":"Frank Cowell, Dirk Van de gaer","doi":"10.1111/jpet.70022","DOIUrl":"https://doi.org/10.1111/jpet.70022","url":null,"abstract":"<div>\u0000 \u0000 <p>Using a simple model of family decision making we examine the processes by which the wealth distribution changes over the generations, focusing in particular on the division of fortunes through inheritance and the union of fortunes through marriage. We show that the equilibrium wealth distribution exists under standard assumptions and has a Pareto tail that can be characterized in a simple way for a variety of inheritance rules and marriage patterns. The shape of the distribution is principally determined by the size distribution of families. We show how changes in fertility, inheritance rules and inheritance taxation affect long-run inequality.</p>\u0000 </div>","PeriodicalId":47024,"journal":{"name":"Journal of Public Economic Theory","volume":"27 2","pages":""},"PeriodicalIF":1.1,"publicationDate":"2025-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143689912","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}