REPLICA ECONOMIES WITH CONGESTED PUBLIC-GOODS

Congested public goods are public goods that allow only a finite number of simultaneous users. Unlike in the theory of pure public goods we prove that the core of an economy with congested public goods shrinks to the set of Lindhal allocations as the economy is replicated. The proof is achieved by showing that all allocations in the core of a sufficiently large replica economy have the equal-treatment property. We discuss briefly possible continuum versions of an economy with congested public goods as well. © 1990.