| Abstract: |
| Baliga and Maskin (2003) argue that in a society with non-excludable externalities, agents must be
compelled to participate in a mechanism to ensure a Pareto-efficient outcome,
otherwise, free riders will appear and the only stable coalition is formed by a single individual.
In this work, we introduce a distribution of costs that permits, under suitable conditions, the formation of non-singular coalitions, in particular, the Pareto-efficient outcome. |
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