An Efficient Tatonnement Process for the Public Good Problem

TL;DR

This paper introduces a decentralized tatonnement process that efficiently determines the optimal level of public good provision with minimal coordination, ensuring convergence to the centralized solution.

Contribution

It proposes a novel decentralized message exchange process for public good problems that guarantees convergence with low coordination overhead.

Findings

Process converges to the optimal public good level

Requires minimal message exchanges

Ensures decentralized implementation

Abstract

We present a decentralized message exchange process (tatonnement process) for determining the level at which a certain public good will be provided to a set of individuals who finance the cost of attaining that level. The message exchange process we propose requires minimal coordination overhead and converges to the optimal solution of the corresponding centralized problem.