Observable preferences for public goods: A note on the incentive compatibility of inferring demand for public goods from private goods demand
Terrance O'Reilly
Abstract
Open-access reader
Terrance O'Reilly
Abstract
Open-access reader
Bradford and Hildebrandt show that under certain conditions preferences for public goods can be inferred from the demand for complementary private goods. They conjecture that their method overcomes consumers' incentives to misrepresent their public goods preferences, but this paper shows that in general this is not the case.
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Bradford and Hildebrandt show that under certain conditions preferences for public goods can be inferred from the demand for complementary private goods. They conjecture that their method overcomes consumers' incentives to misrepresent their public goods preferences, but this paper shows that in general this is not the case.
Key concepts: Public good, Private good, Incentive, Economics, Microeconomics, Intermediate good, Incentive compatibility, Derived demand