Efficient Decentralisation with a Transferable Good
Review of Economic Studies
1983
There are many situations where agents supply input factors and produce a transferable good (money). This paper examines the conditions on technology under which agents can specify reward schedules which lead to an efficient outcome even if inputs are chosen non-cooperatively and preferences are private information. The characterisation of the class of technologies that allows this involves a generalization of additivity known as (n − 1)-additivity.
- DOI
- 10.2307/2297423
- Volume
- 50 (2)
- Pages
- 375
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