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On Sharing the Benefits of Communication

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Working paper
Author/s: 
Efthymios Athanasiou, Santanu Dey and Giacomo Valletta
Issue number: 
2012.041
Publisher: 
FEEM
Year: 
2012
We put forward a model of private goods with externalities. Agents derive benefit from communicating with each other. In order to communicate they need to have a language in common. Learning languages is costly. In this setting no individually rational and feasible Groves mechanism exists. We characterize the best-in-class feasible Groves mechanism and the best-in-class individually rational Groves mechanism.
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