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Unformatted text preview: Optimal Allocation of Public Goods: A Solution to the Free Rider Problem by Theodore Groves and John Ledyard, 1977 o Formulates a specific allocation-taxation scheme where government rules make consumers find it in their best interest to state their true preferences for the good. This would eliminate the free riders who understate their preferences in order to preserve a larger share of their income....
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- Spring '10