Public goods Efficient provision of public goods Discrete case xi: private goods G: public goods gi: is contribution to public goods u, (G, x; ) utility function lifg1+g2≥c G 0 if g,+g<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  +  =   + 