When is efficiency separable from distribution in the provision of club goods? (Q1977399): Difference between revisions

Using the homogeneous of degree zero inverse congestion (`quality') function employed most frequently in the literature, we characterise completely the families of utility functions which are then necessary and sufficient for break-even utilitarian welfare maximising provision of club goods with self-selection to be separable from distribution. Two types of separation -- involving, alternatively (a) the price and quality; (b) the price, quality, facility size and total utilisation -- are considered. When separation is possible, utility functions and optimal decisions take simple, intuitive forms. Our results extend the scope of separation results previously obtained only for pure public goods.