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Efficient Allocations in Club Economies
Author(s) -
Berliant Marcus,
Edwards John H. Y.
Publication year - 2004
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/j.1467-9779.2004.00156.x
Subject(s) - pareto principle , economics , club , neglect , context (archaeology) , compensation (psychology) , order (exchange) , pareto efficiency , set (abstract data type) , microeconomics , public good , pareto optimal , mathematical economics , economy , operations management , computer science , finance , biology , anatomy , medicine , psychology , paleontology , nursing , psychoanalysis , programming language
We explore the characteristics of Pareto‐optimal allocations in the context of local public goods or clubs. A set of first‐order conditions for Pareto optimality is provided. Classical treatments apparently neglect an important term related to migrant compensation, and thus are incorrect. A Pareto optimum is shown to exist.