Stable Provision vs. Cournot–Nash Equilibria in Pure Public Good Economies

Shitovitz and Spiegel (1998, Journal of Economic Theory 83 , pp. 1–18) demonstrated that in pure public good economies, for some consumers the Lindahl consumption bundles can be inferior (utility‐wise) to their Cournot–Nash allocation. In this paper, we prove that in any finite pure public good economy there exists a core allocation that is unanimously preferred, utility‐wise, by all consumers over their Cournot–Nash consumption bundles.