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Dominant Strategy Implementation in a Large Population Public Goods Game

  • Economics Discussion Papers
  • September 1, 2020
  • Ratul Lahkar,
  • Ratul Lahkar, Saptarshi Mukherjee

We consider implementation of the efficient state in a large population public goods game. Agents are divided into a finite set of types. The planner asks agents to report types, which generates a reported type distribution. Based on reported types and distribution, the planner calculates the efficient strategy level and a Pigouvian transfer for each type of agent. We show that this direct mechanism satisfies incentive compatibility in strictly dominant strategies, strong budget balance and ex–post individual rationality.

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