An important current trend in advertising is the replacement of traditional pay-per-exposure (pay-per-impression) pricing models with performance-based mechanisms in which advertisers pay only for measurable actions by consumers. Such pay-per-action (PPA) mechanisms are becoming the predominant method of selling advertising on the Internet. Well-known examples include pay-per-click, pay-per-cal...

Background: Explaining public-goods cooperation is a challenge for evolutionary biology. However, cooperation is expected to more readily evolve if it imposes a smaller cost. Such costs of cooperation are expected to decline with increasing resource supply, an ecological parameter that varies widely in nature. We experimentally tested the effect of resource supply on the evolution of cooperatio...

Abstract We present preferences exhibiting a so-called subordinate good, namely commodity such that the willingness to pay for it increases when consumption of all goods proportionally, and thus receives negative price-cost margin according Ramsey pricing. also show its Bertrand equilibrium price is above Cournotian price.

Standard economic analysis assumes the sets of public and private goods to be exogenously given. Yet societies very often choose the public-private mix, using resources to convert seemingly private goods into ones with public goods characteristics and vice versa. And, in practice, we see a bewilderingly large variety of public-private mixes across societies. This papers advances an analysis of ...

We study the optimal design of mechanisms for the private provision of public goods in a simple setting in which donors compete for a prize of commonly known value. The optimal mechanism in this model is the lowest-price all-pay auction – a mechanism in which the highest bidder wins but all bidders pay the lowest bid. The highest amount for the public good is generated in the unique, symmetric,...

Determining the value of an environmental public good, such as litigation over oil-spill damage to a beach, is an abstract and difficult task. Integration of economics and psychology enabled the study of how social responsibility and persuasive priming influenced the valuations of environmental public goods. Research participants were 460 university students randomly assigned to one of six comb...

In the digital age, it has become fashionable to speak of “information goods”. By information goods, we usually mean computer software and entertainment products stored in digital form, such as music. Information goods have a feature that sets them apart from ordinary private goods. They are public goods in the technical sense meant by economists: use by one person does not preclude use by any ...

This paper considers the incentive aspect of the Balanced Linear Cost Share Equilibrium (BLCSE), which yields an endogenous theory of profit distribution for public goods economies with convex production technologies. We do so by presenting an incentive compatible mechanism which doubly implements the BLCSE solution in Nash and strong Nash equilibria so that Nash allocations and strong Nash all...

This paper proposes a method by which estimates of hypothetical willingness to pay for public goods with passive-use value can be compared with actual willingness to pay inferred from aggregate voting and tax liability data. Acknowledgements We are grateful to Robert Deacon and Peter Moser for helpful comments on earlier versions of the manuscript, and Ulrich Woitek for valuable discussion. FS ...