skip to content

Faculty of Economics

CWPE Cover

Allouch, N.

A Core Equilibrium Convergence in a Public Goods Economy

CWPE1022

Abstract: This paper shows a core-equilibrium convergence in a public goods economy where consumers' preferences display warm glow effects. We demonstrate that if each consumer becomes satiated to other consumers' provision, then as the economy grows large the core shrinks to the set of Edgeworth allocations. Moreover, we show that an Edgeworth allocation can be decentralized as a warm glow equilibrium.

Keywords: competitive equilibrium, warm glow, public goods, Edgeworth, core, decentralization

JEL Codes: H41 C71 D64

PDF: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1022.pdf

Open Access Link: https://doi.org/10.17863/CAM.1116