Public goods Discrete case: benchmark If providing the public goods will Pareto dominate non So l4(1,w1-g1)>1(0,w1) l2(,12-82)>l2(0,02) r; the reservation price of i l(12,-r)=l1(0,)Public goods • Discrete case: benchmark • If providing the public goods will Pareto dominate non. So • ri : the reservation price of i. 1 1 1 1 1 2 2 2 2 2 (1, ) (0, ) (1, ) (0, ) u w g u w u w g u w −  −  (1, ) (0, ) i i i i i u w r u w − =