Public goods Efficient provision of public goods Discrete case x;: private goods G: public goods 8i: is contribution to public goods u, (G,xi), utility function fg1+g2≥C G lo if 8+g2<cPublic goods • Efficient provision of public goods • Discrete case: – xi : private goods – G: public goods – gi : i’s contribution to public goods – ui (G,xi ), utility function 1 2 1 2 1 if 0 if g g c G g g c  +  =   + 