Surplus sharing with a two-stage mechanism

Todd R. Kaplan, David Wettstein

Research output: Contribution to journalArticlepeer-review


In this article we consider environments where agents jointly produce a private output good by contributing privately owned resources. An efficient outcome may not be realized due to strategic behavior and conflicting interests of the agents. We construct a two-stage mechanism, building on a Varian mechanism. The modified mechanism ensures an equilibrium for a large class of preferences and guarantees the feasibility of outcomes.

Original languageEnglish
Pages (from-to)399-409
Number of pages11
JournalInternational Economic Review
Issue number2
StatePublished - May 2000
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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